In a clear indication of the recovery and growth of Dubai's foreign trade and the recovery of the commercial sector

Exports and re-exports of Dubai Chamber members to West Africa rise 42% in 5 months

"Dubai Chamber" and "Expo 2020 Dubai" are preparing to organize the sixth session of the "Global African Business Forum".

From the source

In a clear indication of the recovery and growth of Dubai’s foreign trade, and the recovery of the commercial sector, a recent analysis of the “Dubai Chamber” showed an increase in the value of exports and re-exports of members of the Chamber to West Africa, during the first five months of this year (January-May 2021) by 42%. On an annual basis, it reached a record value of $387 million, resulting in an average compound annual growth rate of 8.4% over the last decade.

The analysis, which was issued by the Chamber on the sidelines of its preparations to organize the sixth session of the “Global African Business Forum”, organized by the “Dubai Chamber” and “Expo 2020 Dubai”, attributed the growth in the declared value mainly to the recovery of commercial activity.

The analysis also revealed that the number of certificates of origin issued to West Africa amounted to 3,201 certificates, during the period from January to May 2021, with a growth rate of 20% on an annual basis, compared to the same period last year.

diversification of markets

The analysis showed that the composition of destinations for exporters who are members of the Dubai Chamber, which targets the West African region, has witnessed a major transformation over the past 10 years, as the current distribution is more balanced, and a clear sign that Dubai exporters are beginning to reap the fruits of their previous efforts in diversification and expansion. In previously unexplored markets.

The analysis indicated that in the past, specifically in 2011, Nigeria dominated the Chamber’s members’ trade with the West African region with a share of 67% of the total value of exports and re-exports of members, followed by Ghana with 12%, Guinea with 7%, and Senegal with 4% .

However, after 10 years, the picture has changed dramatically, to present a more balanced distribution, with Nigeria retaining the first place with a share of 32% due to the rapid pace of increase in the share of smaller markets, followed by Ghana with 17%, Ivory Coast and Guinea with 12% each, Senegal by 8%, and Mali by 4%.

catering products

In terms of the composition of the products of certificates of origin issued for shipments destined for West Africa, the analysis showed that there is a well-balanced mix of products covering consumer and industrial goods, including: plastics (with a share of 31%), and the products of this group included: bottles and bottles, and “polyethers”, And "polyethylene", and plastic bags and bags, in addition to electrical machinery and electronic devices with a 14% share, and it includes electric furnaces, generating sets, GPS systems, mobile phones, television reception systems, and other products.

The analysis showed that mechanical and mechanical tools and equipment own a 13% share of exports, and the group's largest products include specific types of cranes, especially used in car lifts, coal or rock crushing machines, tunnel boring machines, refrigerators and freezers, and air conditioners.

The aluminum group's share amounted to 6%, and included aluminum alloy plates, sheets and tapes, as well as cans of soft drinks and fruit juices.

The other product groups include cosmetics 5%, organic chemical products 5%, iron and steel 4%, compounds and parts thereof 4%, in addition to fish and control and auditing tools with a share of 3% for each one.

$2.1 billion annually untapped export opportunities

The analysis of the "Dubai Chamber" said that "the latest estimates issued by the International Trade Center indicate that Dubai and the UAE traders have opportunities to double exports and re-export to West African markets, as there are untapped export opportunities to these markets estimated at $2.1 billion annually."

According to the analysis, Nigeria is currently the largest market in the region in terms of size, yet it still has an annual export gap estimated at 544 million dollars, which companies in Dubai can benefit from in the short term.

Senegal comes in second place with untapped export potential of $397 million in exports, followed by Ghana with a gap of $365 million.

The analysis concludes that given the strong growth trend, the size of untapped opportunities, and the fact that only 447 of the Dubai Chamber’s member exporters did business with the region, during the period from January to May 2021, the “Dubai Chamber” encourages more trading companies to Explore the West African markets, through cooperation with the representative office of the Dubai Chamber in Ghana, which provides support to the members of the Chamber and covers the entire West African region.

• 20% growth in the number of certificates of origin issued for the West African region, during the period between January and May 2021.

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