This paper examines the United Arab Emirates' international trade activity following its 1996 accession to the World Trade Organization. It surveys the UAE's primary export commodities — chiefly crude oil and natural gas — and its leading export and import partners, including Japan, India, China, and the United States. The paper analyzes the UAE's trade surplus, balance of trade trends, and current account position, drawing on data from the Central Bank of the UAE, the CIA World Factbook, and Trading Economics. It also highlights key bilateral trade relationships, particularly with Australia and the United States, illustrating how the UAE has positioned itself as a significant global trade and investment partner.
The level of trade has intensified between the United Arab Emirates and the rest of the world. Since the UAE became a member of the World Trade Organization in 1996, the country has become increasingly involved in international trade. The success of the UAE's trade activity is also reflected in its trade surplus of 470,939 million AED in 2012, which can largely be attributed to shipments of oil and natural gas.
The most important export partners for the UAE are Japan (15.4%), India (13.4%), Iran (10.7%), Thailand (5.5%), Singapore (5.5%), and South Korea (5.3%). The most exported commodities are crude oil (45%), natural gas, re-exports, dried fish, and dates. The country's exports in 2013 reached $368.9 billion, ranking the UAE 18th in the world by export value.
The most important import partners of the UAE are India (17%), China (13.7%), the United States (10.5%), Germany (5.1%), and Japan (4.2%). The most imported commodities are machinery and transport equipment, chemicals, and food (CIA, 2014). The country's imports in 2013 reached $249.6 billion, ranking the UAE 21st among world countries (Trading Economics, 2013). In addition, the UAE also imports pearls, precious metals and stones, base metals and articles, electronic equipment, and other goods.
The UAE's balance of trade is likely to continue its upward trend. The balance of trade represents the difference between the monetary value of the UAE's exports and imports within a given period. The UAE's balance of trade reveals that the value of exports exceeds the value of imports, resulting in a trade surplus. The average balance of trade reported by the Central Bank of the United Arab Emirates is 176,980 million AED.
The trade activity of the UAE can also be observed by analyzing its current account. The current account is the sum of the balance of trade, net factor income, and net transfer payments, with the balance of trade being its most significant component. The UAE reported a current account surplus of 244,416 million AED in 2012, a figure directly associated with the country's trade surplus.
The efforts made by the UAE to intensify its trade relationships with other countries are evident in its bilateral relationship with Australia. The UAE is Australia's largest Middle Eastern trading partner (Malek, 2014). The strength of this bilateral relationship is rooted in a shared interest in a stable Middle East and Gulf region. The strong trade relationship between the UAE and Australia has led to cooperation on defense, law enforcement, extradition agreements, and counter-terrorism. In this respect, the UAE serves as an important partner that Western countries can rely on well beyond commercial trade.
"Trade surplus and current account analysis"
"UAE trade ties with Australia and US"
"UAE role in global investment attraction"
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