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Dubai: The average compound growth rate of Dubai's exports between 2002 and 2007 was 35 per cent per year. Exports surged 47.5 per cent in 2006-07, the Dubai Export Monitor, a report released by the Dubai Export Development Corporation, said.
Between 2006 and 2007, however, exports grew at 50 per cent compared to the 35 per cent of previous years. The ratio of export to gross domestic product (GDP) increased from 7.8 per cent in 2005 to 10.6 per cent in 2006.
Re-exports grew by 27 per cent per year from 2002 to 2006 and from 29 per cent from 2006 to 2007.
Dr Khalid Maniar, managing partner at Horwath Mak, said exports were likely to increase as Dubai has positioned itself as a hub for re-exports.
He added that it was more feasible for Dubai to re-export goods than begin manufacturing or producing them here as it was cheaper.
"It makes more sense to bring products here and then re-export rather than producing here. It is cheaper if the goods are produced in other countries.
Infrastructure
"[Dubai has] the logistics, the facilities and the banking environment that makes it more feasible for it to bring the goods here and re-export," he said.
The report identified India, China, South Africa, the US and Saudi Arabia as potential markets for Dubai exports.
The report indicated that precious metals accounted for the largest export from Dubai last year at 42 per cent. It also showed the highest growth rate among Dubai exports, increasing by a staggering 124 per cent between 2006 and 2007.
Eighty-six per cent of the outgoing precious metals were exported to India, valued at over Dh9 billion.
Mineral fuels and oils accounted for the second highest growth in exports at 86.8 per cent while the export of printing and paper surged by 50 per cent.
The export of aluminium declined by 8.5 per cent between 2006 and 2007 and minor increases were registered in the export of processed food and furniture.
Exports to India increased dramatically between 2005 and 2007 with the ingots of gold in unwrought form accounting for the lion's share of the exports. The value of waste and scrap of iron and steel imported by India from Dubai was over Dh5 billion with a weight of over 6 million kg.
The top 20 exports to India also included lubricating oils, cans and aluminum containers, drinking glasses and articles of gold jewellery.
Western demand
Exports to Brazil and Canada also increased by 155 per cent and 108 per cent respectively. However, exports to Japan dropped by 20 per cent from 2006 to 2007, exports to the US also fell by 12 per cent; they fell by 68 per cent to Indonesia and declined by 10 per cent to South Korea.
Exports to Egypt also increased by 57 per cent, its biggest import from Dubai being aluminium and related articles, plastics, pearls, precious and semi-precious stones and furniture, bedding, mattresses and lighting.
Mineral fuels and oils were mostly exported to Jebel Ali Free Zone, Yemen, Kuwait, Iran, India, Pakistan, Libya, Bahrain, China and Ghana.
In 2006-07, the top importer of aluminium from Dubai was the Netherlands at 10 per cent valued at over Dh3 million, while Iraq imported the largest amount of processed food from Dubai also worth over Dh3 million.
Export of iron and steel to India were valued at over Dh6 million, accounting for 38 per cent of exports of that product.
Ceramics were mostly exported to Belgium, plastics to Iran, furniture to Qatar, printing material and paper to Afghanistan and electrical machinery to Jebel Ai Free Zone.
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