UAE 2010 non-oil trade up 14 percent on global recovery

The United Arab Emirates' non-oil foreign trade jumped 14 percent in 2010, data showed on Sunday, helped by an improving global economy and trade with Asia. Non-oil foreign trade in the UAE, the world's third-largest crude exporter and key Gulf business hub, picked up strongly last year as global and local debt woes eased.
The value of the OPEC member's non-oil foreign trade grew to 754.4 billion dirhams ($205.4 billion) from 660.4 billion in 2009, data from the UAE Federal Customs Authority (FCA) showed. Exports without crude jumped 27 percent from 2009 to 83.1 billion dirhams, while re-exports grew 26 percent.
"The sturdy growth in the UAE non-oil foreign trade during 2010 despite the challenges faced by the international trade, and with the continued international financial crisis and political upheavals, confirms that the UAE foreign trade is on the right track towards normalisation," the FCA said.
Non-oil imports increased by 8 percent year-on-year to 485.4 billion dirhams in 2010, the data also showed.
"The improvement in exports and re-exports is related to the recovery in global demand and the rise in trade flows over the year, with Asia being a strong contributor," said Tim Fox, chief economist at Emirates NBD bank. The UAE has escaped protests that have shaken nearby Bahrain, Oman and Yemen. But its government plans to spend $1.6 billion on infrastructure in less developed areas.
In 2010, India, China and the United States were the key exporters to the UAE. Re-exports, the bulk of the UAE trade, were led by India, Iran, and Iraq. The top commodities by value were gold, diamonds, cars and telephone sets, the data showed. In a Reuters poll in March, analysts forecast a 3.4 percent economic growth this year and 4.0 percent in 2012.
In December, non-oil exports plunged 14.4 percent year-on-year, while re-exports grew 32.4 percent and imports 18.4 percent compared to the same period a year earlier.
"2010 confirms a very strong recovery in the on oil trade activity in the UAE, which basically reflects very strong activity of Dubai," said Philippe Dauba-Pantanacce, a regional senior economist at Standard Chartered in Dubai.
Dubai accounted for 76 percent of the UAE non-oil trade in 2010. Abu Dhabi accounts for almost all of the oil production. Dubai's non-oil exports may grow 20 percent in 2011 as new doors to African markets open, government officials have said.