ABU DHABI, Feb 17 (KUNA) -- The UAE Ministry of Economy said in a report that that the value of the UAE's non-oil foreign trade reached AED 1.750 trillion (USD 476.4 billion) in 2015, a growth of up to 10 percent from 2014.
The figures in the first half of 2015 are positive indicators for the UAE's foreign trade, including direct trade.
In its report, the Ministry of Economy pointed out that these figures show the rise of the country's competitiveness as a capital of regional trade, noting the volume of the UAE's non-oil trade (inclusive of free trade zones) valued at AED 1.632 trillion (USD 444.3 billion) in 2014, while its direct trade totaled AED 1.072 trillion (USD 291.9 billion), and the value of imports reached AED 696.4 billion (USD 189.6 billion).
The WTO figures show that the UAE's exports amounted to AED 132.2 billion (USD 36 billion) and re-exports totaled AED 243.7 billion (USD 66.3 billion).
The Ministry of Economy also noted the raise in the volume of the UAE trade zones in 2014 amounted to about AED560 billion (USD 152.4 billion), confirming that the country managed to achieve the top ranks in International Trade Statistics 2015 released by the World Trade Organization (WTO).
According to the report, the UAE maintained its top ranks on the World trade map and came 16th globally in commodity exports, and 20th globally in commodity imports. In the area of service trade, the UAE ranked 19th globally as service importer, and 42nd globally in service exports.
Commenting on these figures, Sultan bin Saeed Al-Mansouri, Minister of Economy, said that "The figures and data contained in the WTO International Trade Statistics 2015 are promising, and reflect the continued success of the UAE's economic policies year after year.
This success has boosted the UAE's position on the global trade arena. We expect that the UAE will achieve more growth and progress as well as more positive results on all levels that come as part of the Federal Government's implementation of the UAE Vision 2021 and its National Agenda."
The minister added that "The WTO report offers an overview of the development the UAE experienced in international commodity and service trade.The UAE made intensive efforts over the past years, represented in opening up its economy to foreign trade and investment with the aim of increasing growth opportunities and achieving the well-being of its people and residents."
Al-Mansouri added that Dubai's win to host the World Expo 2020 and the groundbreaking development projects carried out by the UAE in several sectors, supported by many prestigious national initiatives such as the national innovation strategy, have all together given a boost to ongoing efforts aiming to raise the country's profile and competitiveness to better improve the performance of various sectors, including trade.
He pointed to the government's efforts with respect to the international agreements, noting the UAE's membership in the WTO, which dates back to March 1996.
The UAE has maintained its position as the most important market for exports and imports of goods in the Middle East and Africa countries, according to the report of International Trade Statistics 2015.
Al-Mansouri stressed that the sector of Small and Medium-size Enterprises (SMEs) in the coming future will see a new phase of growth and development and will witness a significant turn during the coming phase with the start of the practical steps for the implementation of the Federal Law No. 2 of 2014 on projects for Small and Medium-sized Enterprises.
In this regard, Al-Mansouri noted the importance of the Cabinet decision in June to form the Council of Small and Medium-Sized Enterprises and Projects and the establishment of the National Program for small and medium-sized enterprises and support entrepreneurs in the country with privileges and incentives to promote entrepreneurship of National Business.
Al-Mansouri said that small and medium businesses are an ultimate priority to the UAE and play a vital role in promoting growth, implementing the diversification policy, and shifting to a knowledge-based economy driven by creativity and innovation, in an ultimate goal to achieve the UAE 2021 vision.
Commenting on the ministry's efforts on the purpose of setting up the Council, Al-Mansouri said, "The SME sector is seen as a major contributor to economic growth and diversification.
In addition to playing a major role in the UAE's transformation towards a knowledge-based economy, SMEs are a key employment generator and mitigate adverse economic and social effects. Given its phenomenal potential, the UAE Vision 2021 has set up a national index that the contribution of the SME sector to the nation's non-oil GDP must reach 70 percent by 2021."
As part of the formation of the council, the Ministry of Economy is currently liaising with various stakeholders in the private and public sector, including the Ministry of Labour, the Ministry of Higher Education and Scientific Research, Central Bank, Emirates Development Bank, Khalifa Fund, Dubai SMEs, Sharjah Entrepreneurs Supporting Establishment "Ruwad", as well as Saud bin Saqr program for Young Business Leaders, Saud bin Rashid Al-Mualla program for Youth Welfare Projects, Ajman Chamber of Commerce and Industry, and the Fujairah Chamber of Commerce and Industry.
Following its formation, the council will assume its role of reviewing and approving funding programs for Emirati SME entrepreneurs, based on the recommendations provided by the Central Bank and the Emirates Development Bank.
The council that is being set up in accordance with Federal Law No.2 of 2014 on Small and Medium-Sized Enterprises and Projects will usher in a new phase of growth and development for the SME sector in the UAE, he added.
The council will lay out strategic policies and plans for the development of SMEs. It will also provide the guidelines and rules necessary for co-ordination between the concerned programmes and entities. More importantly, the council will set the conditions and criteria for membership to the National Program for Small and Medium-Sized Enterprises and Projects. The council will follow up on the program performance indicators, and gain approval of its annual report on projects and enterprises, review the effectiveness of the criteria for classifying projects and enterprises, propose appropriate amendments and put up the same to the ministers for their endorsement and recommendations.
Al-Mansouri said that the Council of Small and Medium-Sized Enterprises and Projects is in the final stages of achieving its full formation and implementation.
The National Program for Small and Medium-Sized Enterprises and Projects, which will function under the umbrella of the Ministry of Economy, aims to draw up the general outlines pertaining to the provision of technical, administrative, and training expertise and support in various fields for ensuring the continued development of small and medium enterprises.
The program will co-ordinate with federal and local government entities and the private sector for the purpose of marketing the SME products in the UAE and abroad. It will also co-ordinate with the concerned authorities for the provision of benefits and incentives for SMEs, besides collaborating with relevant regional and international entities to fast-track the development of the SME sector.
The program will additionally work on raising awareness to encourage the creation of SMEs, identify local and international exhibitions, and facilitate the participation of SMEs in international events. In addition to maintaining a database of SMEs registered in the program, the initiative will enable the enterprises to obtain facilities and funds from funding programs and local entities.
The SMEs that enjoy the membership of the program will benefit from the facilities and incentives provided by the UAE federal government such as simplified procedures, reduced license fees, and allocation of appropriate space in international exhibitions that the UAE participates in.
In addition, SMEs affiliated to the program will also be featured in specialized local exhibitions for the purpose of promoting and marketing their products. Benefits to SMEs could also include exemption of customs duties for production purposes such as equipment, raw materials, and intermediate goods vide a resolution by the Cabinet and relevant authorities in the Emirates.
Al-Mansouri also shared that the Emirates Development Bank is currently working on developing a suite of distinctive funding programs for UAE national SME entrepreneurs, and the Ministry of Economy is concurrently setting up support tools, plans and programs for the Council of Small and Medium-Sized Enterprises and Projects in order to achieve its long term objectives.
Al-Mansouri underlined the role of SMEs in the global economy, "We are keenly aware of the important role that SMEs play as key drivers of innovation and as engines for economic growth.
Today, the SME sector contributes to nearly 92 percent of the UAE's GDP. As part of our national strategy outlined by the UAE Vision 2021, we aim to raise the contribution of this vital sector to 70 percent over the next six years." International indicators, reports show UAE strong and sustainable economy Al-Mansouri, said that the International indicators and reports show the UAE's strong and sustainable economy.
"Its economic policies were based on diversification away from the oil sector, building balanced relations with leading international economies and opening to foreign countries. The country's fundamentals have helped it overcome obstacles and achieve a stronger economic performance in 2014, as well as continue this strong performance in the future," he said.
Indicators issued by the Ministry of Economy, as well as reports from the Federal Competitiveness and Statistics Authority show that non-oil sectors today contribute to more than two thirds of UAE's GDP. Sheikh Mohammad's message stated that these sectors have become the main stimulator of the overall economic growth. Growth of the overall economy is at 4.6 percent while growth in the non-oil sectors has registered 8.1 percent in 2014.
GDP in 2014 reached AED 1466.9 trillion at current prices, while the GDP at constant prices reached AED 1154.8 trillion in 2014. Real GDP growth reached 4.6 percent in 2014 and is expected to growth in 2015 by 3 to 3.5 percent.
Non-oil sectors recorded strong growth in GDP at current prices and reached 8.1 percent in 2014, and the contribution of non-oil sectors in the national economy reached 68.6 percent of GDP at constant prices in 2014.This contribution is expected to reach 80 percent in 2021 through intensive investment in the industrial and tourism sectors, air and maritime transportation, import and re-export as well as through supporting activities based on the knowledge economy.
The industrial sector maintains a high contribution rate in the GDP at a share close to 15 percent, which is expected to increase in the coming years thanks to many economic sectors reaching their targeted objectives, and an expected move of more investments to the industrial sector's diversified offering which continue to develop and grow significantly during the past period.
Al-Mansouri said that the invested capital in industrial facilities in the country reached AED 127.3 billion, distributed between 6,041 facilities with a total of 433,939 employees.
He added that the industrial sector is a main driver to the national economy performance, and an important element to overall development and income sources diversification.
The sector's contribution to GDP is approximately 14 percent, a continued increase.
It is expected to double the volume of industrial investment in the State during the upcoming five years with continuation of infrastructure projects, both at the federal level or within each emirate as the country is preparing to work on a number of projects both in the development of integrated industrial zones or the launch of huge projects for roads and lay the transport network of world-class besides the Union Train, which would connect the most important residential and industrial centers in the country with a safe transportation network of appropriate costs, along with the its strategic location which makes it an ideal commercial and logistical center for industrial products.
Intensive efforts to open up area for trade and foreign investment Al-Mansouri emphasized that the UAE has made during the past years intensified efforts to open up the economy to trade and foreign investment in order to increase growth opportunities and the welfare for its people and residents in the country.
He pointed to the government's efforts to raise the competitive level of the state, which will reflect positively on the various vital sectors, including the trade sector.
Local and international reports agree that the UAE has become a key player in international trade. Upward indicators of foreign trade reflect the trade openness policy pursued by the UAE to diversify the economy.
"The UAE has become a major player in international trade," said Al-Mansouri.
"Our country has bolstered its position in the global trade scenario and we expect it will continue to do so in the coming years. The trade policy of the UAE, advanced infrastructure, strategic location and legislative environment are all factors contributing to the continuous growth of our trade sector. During the past few years, enormous efforts were exerted to increase the level of competitiveness of the UAE and increase the opportunities of growth and development in all sectors, including trade." He noted the government's efforts with respect to the international agreements, referring to the UAE's membership in the WTO, which dates back to March 1996, saying that under this membership, the first review of the UAE's trade policy between April 24th and 26th of 2006, and the second review, from March 27th to 29th of 2012, at the WHO Headquarters in Geneva have been made, which led to significant development of the trade sector in the country.
The Minister of Economy pointed to the UAE's efforts with regard to the multilateral global trading system and the strategy of free trade negotiations within the framework of the Gulf Cooperation Council for the Arab States (GCC). He referred to the signing of a free trade agreement between the GCC countries and Singapore, which came into force at the beginning of 2015, and between GCC countries and The European Free Trade Association (EFTA) "Norway, Sweden, Iceland and Liechtenstein) on 22nd June, 2009. He expected the agreement to come into force during the current year.
There was also the signing of the free trade agreement between the GCC countries and New Zealand in October, 2009, where the GCC is still negotiating on free trade agreements with both the European Union and the Mercosur countries "Brazil, Paraguay, Uruguay and Argentina," and one each of Japan, China, South Korea, Australia, Pakistan, India and Turkey.
For his part, Abdullah Bin Ahmed Al-Saleh, Under-Secretary of the Ministry of Economy for Foreign Trade and Industry Affairs, praised the UAE's prestigious stature, saying that the UAE will continue to achieve positive results in the next six years in the context of the Federal Government's implementation of the UAE's vision 2021 and its national agenda.
He noted the information released in the World Trade Trends report, which confirmed that the UAE is on the right approach to improving its trading system and progress year after year to new levels.
The report concluded by saying that the UAE took first position among Arab countries and was 22nd worldwide in the global investment index for 2015, thanks to the ability of its sectors to attract foreign investment. (end) gta