Business Bureau, Gulf Today

Dubai Chamber of Commerce and Industry (DCCI) member companies’ exports to China in May 2020 increased 18 per cent month-on-month (m-o-m) and 26 per cent year-over-year (y-o-y) as the Chamber issued a record 256 Certificates of Origin (COOs) targeting the country worth over Dhs 283 million.

The value of Certificates of Origins for May, the third highest on record, marked growth rates of 14 per cent month-on-month and 7 per cent year-on-year (y-o-y).

Unlike the previous spikes in declared values, the upward trajectory leading to the month of May was largely driven by solid growth in activity, which suggests a continuation in sustained future growth.

Diversification of exports, strengthening Dubai-China ties and Dubai traders’ strategy of filling gaps in Chinese market among the key drivers of export growth.

A record 256 Certificates of Origin (COOs) targeting China issued by Dubai Chamber in May 2020 and the value of Certificates of Origin rose 27 per cent year-on-year to reach Dhs283 million during the same month.

Vegetable oil (i.e. rapeseed oil / colza oil) dominated the value of member exports with a share of 53 per cent. Plastics (i.e. ethylene-alpha-olefin copolymers, polyethers, polymethylene) contributed another 25 per cent to the total, followed by food processing waste/residue, which contributed 12 per cent of the total.

The remaining 10 per cent of the total declared value of COOs came from paper products (i.e. fluting paper of recycled linerboard), chemicals, sugar, man-made filaments, wood, and vehicles.

With Dubai developing its rapeseed oil extraction and processing capacity in recent years, traders in the emirate have stepped up to fill gaps in the Chinese market created by ongoing trade tensions, which in turn gave a strong boost to Dubai’s total exports.

The data also signalled strengthening trade ties between Dubai and China.

During the January-May 2020 period, the total number of COOs issued for China-bound shipments reached 1,100 certificates, which is almost double the number issued during the same period six years ago.

This upward trend is expected to continue in the coming years, as the current level of exports activity has not yet reached its potential.

In addition, the ongoing diversification of Dubai’s exports and development of manufacturing industries in the emirate were highlighted as other key factors driving China-bound exports of member companies.

Dubai Chamber has identified huge potential for boosting exports to China.

The Chamber’s representative offices in Shanghai and Shenzhen are studying new business opportunities emerging in the Chinese market, which companies in Dubai can benefit from.

Dubai based exporters, re-exporters and manufacturers, particularly those active in food processing, plastics, chemicals, packaging, base metals and construction materials can explore such prospects by taking advantage of the various services offered by the Chamber and its international offices to expand their reach in China.

Meanwhile the Panamanian Minister of Private Investment Jose Alejandro Rojas has called on UAE companies to leverage Panama as a global gateway to expand their footprint in Latin America and tap into new growth opportunities in the region.

Jose Alejandro Rojas’ comments came during a recent webinar organised by Dubai Chamber of Commerce and Industry’s (DCCI) representative office in Panama, which was also attended by Hassan Al Hashemi, Vice President of International Relations, Dubai Chamber, and 58 public and private sector stakeholders from the UAE and abroad, representing a wide variety of economic sectors.

Presentations highlighted competitive advantages offered by Panama, such as its strategic geographic location, dollarized economy, investor-friendly environment, attractive free zones, advanced infrastructure and status as Latin America’s preferred hub for trade, finance and logistics.

Addressing participants during the webinar, Rojas noted that UAE businesses can benefit from Panama’s connectivity as the country sits at the crossroads of seven of the main fibre-optic submarine cables in the region. The minister shed light on Panama’s efforts to build a digital economy that can withstand challenges in the post-Covid-19 era, boost competitiveness and create new jobs. He noted that there is plenty of untapped business potential in digitalisation, describing it as a key area where UAE companies can make their mark.