Last week’s news of the UAE’s non-oil trade value soaring past the AED1 trillion mark over the first half of 2022, indicates the market remains robust despite global headwinds.
Despite prospering from inflated energy prices, the UAE economy is still driving its diversification ambition. While this headline is certainly positive and telling of the direction the UAE is going, understanding the how and why is also important.
The UAE government has been active in establishing trade agreements—most recently with India, Indonesia and Israel—which naturally help to grow trade volumes. With more agreements expected to be made in the near term, these deals should support further growth in both imports and exports.
However, beyond this, the government has been pushing a strong reform agenda over the past several years and has made notable changes to the business landscape in the post-covid era. This opened up the nation to international talent and foreign investors, with the 8% rise in non-oil exports an indication that this strategy is beginning to bear fruit.
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