Abu Dhabi foreign trade soars 35% in H1 as UAE races toward Dh4 trillion target

07/08/2025 04:42 AST

Abu Dhabi's non-oil foreign trade jumped by 34.7 per cent in the first half of 2025 to Dh195.4 billion, underscoring the emirate's resilience, competitiveness, and growing role in global trade.

The sharp increase, from Dh145 billion during the same period in 2024, far outpaces the 1.75 per cent average global trade growth recorded during the first six months of the year, highlighting how Abu Dhabi is bucking the global slowdown.

The performance comes amid a broader UAE trade boom. The country's total non-oil foreign trade for the January-June period climbed to Dh1.7 trillion ($462.8 billion), according to official data, double the value recorded just five years ago. This growth reflects the UAE's success in diversifying its economy, accelerating trade and investment deals, and strengthening its position as a global commercial hub bridging East and West.

Abu Dhabi's gains were broad-based. Non-oil exports jumped by 64 per cent year-on-year to Dh78.5 billion, compared with Dh47.9 billion a year earlier. Imports rose 15 per cent to Dh80 billion, while re-exports grew by 35 per cent to Dh36 billion from Dh26.6 billion in the first half of last year. Officials attribute this momentum to the emirate's robust infrastructure, advanced logistics, and streamlined customs systems, which have facilitated the swift and secure movement of goods through its ports, airports, and land border crossings.

The UAE has set a target of reaching Dh4 trillion in non-oil foreign trade by 2031, but government leaders now say the milestone could be reached within two years - four years ahead of schedule - if current trends continue. The acceleration is supported by the country's network of Comprehensive Economic Partnership Agreements (CEPAs) with key trading partners including India, Indonesia, Israel, Turkiye, Cambodia, and Georgia, with more in the pipeline.

Ahmed Jasim Al Zaabi, chairman of the Abu Dhabi Department of Economic Development, said the results reflect the emirate's position as a "global economic powerhouse." He noted that Abu Dhabi's ability to deliver consistent growth in the face of global economic challenges is rooted in "long-term planning, decisive policy execution, and a commitment to enabling the free exchange of goods, services, and innovations."

Al Zaabi said the emirate is intensifying efforts to cement its status as one of the world's most business-ready economies by further streamlining trade procedures, deploying advanced digital systems, and integrating services to enhance efficiency. "We are committed to positioning Abu Dhabi as a key node on international supply chains," he said.

The strong performance also reflects the work of Abu Dhabi Customs, which has been modernising its systems and embracing digital innovation to improve trade flows.

Director-general Rashed Lahej Al Mansoori said the growth underscores the effectiveness of the emirate's economic strategy and the collaborative efforts between customs authorities and strategic partners. "Our focus is on delivering best-in-class services, accelerating customs clearance, and integrating with local and international partners to support sustainable growth," he said.

The UAE's trade strategy aligns with global supply chain shifts that have accelerated since the pandemic, as companies seek resilient and diversified routes for goods. Abu Dhabi's strategic location, combined with its investment in ports such as Khalifa Port and the expansion of Abu Dhabi International Airport's cargo facilities, has strengthened its role as a logistics and re-export hub for the Middle East, Africa, and Asia.

Recent data from the World Trade Organization (WTO) shows global merchandise trade volume grew by just 1.2 per cent in 2023, with forecasts for 2025 suggesting only moderate recovery.

The International Monetary Fund (IMF) has projected that the UAE's non-oil sector will grow by more than 4 per cent in 2025, supported by investment inflows, expanding manufacturing capacity, and strong tourism activity. Analysts say that non-oil trade will remain a critical driver of that growth, particularly as Abu Dhabi advances its industrial strategy, which aims to more than double the size of the manufacturing sector to Dh172 billion by 2031.

Trade agreements are already yielding results. The UAE-India CEPA, signed in 2022, has significantly boosted bilateral trade, with Indian imports of UAE goods rising sharply in categories such as aluminium, petrochemicals, and precious metals. Similar gains are being recorded in trade with Indonesia and Israel, where reduced tariffs and streamlined customs procedures are enhancing market access for Emirati exporters.

Abu Dhabi's logistics efficiency is a key competitive advantage. The emirate ranks among the top in the region for logistics performance, according to the World Bank's Logistics Performance Index, supported by integrated customs platforms, smart inspection systems, and 24/7 trade facilitation services.

Analysts said the emirate's ability to grow non-oil trade at more than twenty times the global average in the first half of 2025 is being viewed as a strong signal to investors seeking stability and opportunity in an uncertain global economy.

Khaleej Times