The UAE’s merchandise and services trade reached a substantial $1.258 trillion (Dh4.61 trillion) in 2023, maintaining almost the same level as the previous year. This achievement, driven largely by the services sector, was highlighted in a report by the World Trade Organization (WTO).
Merchandise exports from the UAE dropped by 5 percent to $488 billion last year, ranking the country 14th globally. On the other hand, imports rose by 7 percent to $449 billion, making the UAE the 16th largest importer worldwide. The country’s merchandise exports and imports represented 2.1 percent and 1.9 percent of the global share, respectively.
The WTO report noted that merchandise imports declined in most economies, largely due to falling prices of commodities such as oil and natural gas, which saw an average price drop of 63 percent in 2023. However, the UAE, along with other major energy exporters like Russia and Saudi Arabia, saw an increase in merchandise imports.
The UAE’s trade was bolstered by the Comprehensive Economic Partnership Agreements (Cepa) signed with several countries, including India, Georgia, South Korea, and Israel. These agreements significantly boosted trade and commercial services sectors.
While there was a drop in merchandise trade, the rise in the services sector offset this decline. The UAE government has been focusing on establishing the country as a services-based economy, attracting top talent worldwide by offering long-term residency permits like the Golden Visa and Silver Visa to professionals, scientists, and outstanding students.
In the realm of commercial services, the UAE was ranked 13th globally, with exports increasing by 8 percent to $165 billion. Commercial services imports also saw a rise of 13 percent to $108 billion, positioning the UAE as the 18th largest importer of commercial services in the world.
Additionally, the UAE was ranked 20th globally in digitally delivered services, with revenues reaching $48 billion in 2023, up from $46 billion the previous year.
The decline in the UAE’s merchandise exports, as well as those of other Gulf countries, was largely due to the drop in oil and gas prices. Despite this, the global context showed a 5 percent decrease in the US dollar value of world merchandise trade in 2023, totaling $24.01 trillion. This decline was mostly counterbalanced by a robust 9 percent increase in commercial services trade, which reached $7.54 trillion.
Looking ahead, the WTO projects that the volume of world merchandise trade will grow by 2.6 percent in 2024 and 3.3 percent in 2025, as demand for traded goods is expected to rebound following the contraction in 2023.
