Next to America and the United Kingdom
The UAE is among the top 3 global commodity trading centers
Faryal Ahmadi: "The commercial environment has enabled the UAE to secure its rating among the best global commodity trading centers in the world."
The UAE has continued to consolidate its position as one of the top three global commodity trade centers, according to the latest edition of the Dubai Multi Commodities Center's Future of Trade 2020 report, which assesses the role of the top 10 major centers on the international trade map.
The evaluation of these centers was based on a comprehensive analysis of 10 indicators across three main areas: site and commercial partnership factors, commodity resource factors, and institutional factors.
According to the index 2020, the United States of America marginally surpassed the UAE to occupy the first place with a percentage of 61%, as it scored high points in institutional factors and commodity resources.
And after the UAE topped the index in 2018, it remained one percentage point lower than the United States, although it increased its total score from 57% in 2018 to 60% this year.
The United Kingdom ranks third in the merchandise trade index for 2020, with an overall score of 46%, with high rates of institutional and trade factors.
And since 2018, the Netherlands has witnessed the largest decline in the table, dropping from fourth to seventh place, after it recorded a significant decrease in its relative performance of site and commercial partnership factors.
Faryal Ahmadi, Chief Operating Officer at DMCC, said: “The Merchandise Trade Index published in the latest Future of Trade report provides important insights.
The positive attitude of the UAE reflects a carefully organized business ecosystem with large investments in infrastructure and technology, with priority given to ease of doing business, and this commercial environment enabled the country to secure its rating among the best global commodity trade centers in the world.
In order to maintain our advanced position, the UAE will continue to innovate products, services and regulatory mechanisms, and set industrial standards. ”
The UAE has the highest score for commodity resource factors (74%), due to the large amount of oil it exports and natural resource revenues as a percentage of GDP.
It also ranked fifth in terms of institutional factors (70%), as it witnessed strength in enforcing contracts with flexibility to improve companies' ability to trade across borders, and the UAE ranked sixth in terms of location and commercial partnership factors.
The rest of the top ten include Switzerland (44%), Singapore (42%), Hong Kong (41%), the Netherlands (40%), China (36%), Nigeria (30), and South Africa (19%).
The UAE increased its score in the index from 57% in 2018 to 60% this year.
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