UAE Surpasses Trillion-Dollar Trade Milestone Amid Global Slowdown

The United Arab Emirates recorded a total foreign trade volume of AED5.23 trillion in 2024, marking a 49 percent increase from AED3.5 trillion in 2021, according to the World Trade Organisation’s “World Trade Outlook and Statistics” report. This significant growth underscores the UAE’s strategic economic vision and its reinforced position as the leading trade hub in the Middle East and Africa since 2014, as well as its standing among the top 20 global trade centres for goods and services.

In a global trade environment marked by a 2.9 percent growth in merchandise trade and 6.8 percent in services trade in 2024, the UAE’s performance highlights its resilience amid rising tariffs and uncertainties. The nation's non-oil foreign trade reached AED2.997 trillion by the end of 2024, representing a 14.6 percent growth compared to 2023. This growth significantly outperformed global trade trends, with the UAE's non-oil exports soaring to AED561.2 billion, a 27.6 percent increase from the previous year.

His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, emphasized the UAE’s role as a global trade hub, stating that the nation has prioritized openness, connectivity, and the free flow of trade, capital, and people, establishing itself as a vital link between East and West and a global economic centre. He noted that while global trade grew by just 2 percent in 2024, the UAE's foreign trade expanded at seven times that rate, achieving an impressive 14.6 percent growth.

The Comprehensive Economic Partnership Agreements , led by President His Highness Sheikh Mohamed bin Zayed Al Nahyan, contributed significantly to this growth, adding AED135 billion to the UAE's non-oil trade with partner nations—a 42 percent increase compared to the previous year. These agreements have been instrumental in diversifying the UAE's trade portfolio and expanding its reach into new markets.

The UAE's non-oil trade with its top 10 global partners grew by 10 percent, while trade with other countries expanded by 19.2 percent in 2024 compared to the previous year. Key export categories included gold, jewellery, cigarettes, oils, aluminium, copper wires, printed materials, silver, iron industries, and perfumes, collectively growing by 36.8 percent compared to the same period in 2023.

Re-exports reached AED345.1 billion in the first half of 2024, growing by 2.7 percent compared to the same period in 2023, and increasing by 11.2 percent compared to the same period in 2022. Re-exports with key trading partners all grew, particularly Saudi Arabia, Iraq, India, the United States, Kuwait, and Qatar. Kazakhstan joined the list of leading re-export partners, nearly doubling its growth due to increased re-exports of telephone devices.

The UAE's strategic investments and economic policies have played a crucial role in achieving these milestones. The National Investment Strategy 2031 aims to establish the UAE as a global investment hub by leading in emerging sectors, attracting top talent, and fostering innovation and entrepreneurship. The strategy seeks to double cumulative foreign direct investment to AED1.3 trillion and triple the cumulative FDI balance to AED2.2 trillion by 2031.

In 2024, the UAE's FDI inflows surged by 35 percent to AED112.6 billion, despite a global decline, affirming the success of its strategies and the high level of international confidence in the nation. The UAE's share of global FDI flows has increased 5.5 times since 2015, with inflows rising 17.3 percent despite a global decline of 5.3 percent.