Dubai Chronicle: Trade

Showing posts with label Trade. Show all posts

Showing posts with label Trade. Show all posts

Cap on steel prices ruled out

The UAE government has ruled out any intervention in the markets to curb the price of reinforced steel, which is on an upward spiral.

Mohammed Abdul Aziz Al Shehi, Undersecretary of the Ministry of Economy, told Emirates Business that the ministry will not move to fix the price of a tonne of steel, which currently ranges from Dh5,400 to Dh5,700 according to the country of origin.

He added that the steel price hike is not a local or regional occurrence but a global phenomenon.

"We will not fix the prices since they change each day, and price-fixing will lead to an absence of steel from the markets, which would be very damaging to the real estate and infrastructure projects underway in all emirates," Al Shehi said

The Undersecretary said the government has already exempted steel from customs tariffs and there were no taxes imposed on the commodity either. Companies and traders are free to import steel and there exists no monopoly in the market as well. Under the circumstances, then, the major reason for the price rise in the country was a lack of local manufacturing facilities, he said. However, there are plants currently under construction, he added.

The shortage of cement will disappear in a few days, Al Shehi said, and the ministry will this week announce a list of 30 suppliers of cement nationwide who are selling at Dh18 a bag. Moreover, cement is sold for Dh16 a bag at cement factories and there is no need for contractors to buy at higher prices since availability is not a constraint at the factories, he said.

The ministry will carefully monitor new dealers all over the country and scrutinise their receipts and bills of sale.

Buyers will be sold 50 bags at a time and the ministry does not mind if consumers buy the amount they need in stages, Al Shehi said.

Large contracting companies can buy directly from the plants, he said. Ras Al Khaimah, Ittihad and Gulf CementGulf Cement factories will push their production to the maximum in order to increase supply and reduce prices. Also, huge amounts are being imported from India, Iran and Pakistan, he added.

Meanwhile, big contractors in Abu Dhabi continued to complain about the growing shortage of cement. According to some who spoke to Emirates Business, there exists a black market for the material where a bag of cement is sold for Dh22 to Dh25.

They also said the price of a tonne of reinforced steel in Abu Dhabi has hit Dh5,700, which is expected to go up to Dh6,000 in a few days time.

/Emirates Business 24/7 /

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The trade between Dubai and India touched $19 bn in 2007

Indian Consul General Venu Rajamony told reporters here yesterday that total trade between India and Dubai from 2003 to 2007 has increased over six-fold from $3.5 billion to $19 billion.

Imports of Dubai from India rose about four-fold from $2.6 billion to $9.9 billion in last five years, while exports to India increased by whopping 39 times to $3.9 billion from $0.1 billion. Re-exports from Dubai to India increased $0.8 billion to $5.9 billion.

The major commodities imported by Dubai were precious and semi-precious stones, and precious metals valued at about $5.8 billion.

Recent Dubai Customs figures show that India has emerged as Dubai's top trade partner in the first quarter of 2008, with the country heading the list of import and export destinations from the latter.

India has a share of 13.14 per cent of the total imports from the emirate worth AED 12.6 billion (1 AED = $0.272), while 45.7 per cent of the total exports worth AED 4.7 billion during the period.

In 2007, imports of Dubai from India were the second largest after China, and the percentage of India's share in the imports of Dubai went up to 12.2 per cent from 10.6 per cent in 2006.

/Business Standard/

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Rice price set to rise in the UAE

Prices of all varieties of rice are expected to rise in the UAE following India's decision not to relax a ban on rice exports imposed in March.
India, the largest rice supplier to the Gulf, has been widely expected to ease curbs on exports of rice with the prospects of an imminent record crop. However, dashing hopes of easing export curbs, Trade Secretary Gopal Pillai said on Tuesday that despite the promise of a bumper crop in 2008, the country would not be following Cambodia's lead in allowing shipments of rice.

India is set to harvest a bumper crop. Output in the year ending June may reach a record 95.68 million tonnes, compared with 93.35 million tonnes produced a year earlier.

Like other Asian rice exporters, India banned exports of non-basmati rice after a series of earlier partial restrictions, in a bid to boost supplies to contain record high inflation.

Importers and distributors in the UAE said prices of non-basmati and basmati rice would come under further pressure as stock levels are fast depleting. "The shortage of popular non-Basmati variety such as Palakadan Matta and Thanjavoor Ponni is already being felt at small and medium retailers." With the current stocks unlikely to last more than two months, the UAE and other GCC countries are going to face a serious supply crunch despite news that Vietnam, following Cambodia, is expected to relax export curbs in July.

India, the world's second largest exporter of the grain — exporting about four million tonnes annually — accounts for more than 50 per cent of UAE's rice imports. Indian rice export to the UAE is around 120,000 metric tonnes per month. Prices of non-Basmati rice have gone up by 25 per cent from Dh15 per five kilo bag to Dh20 while traditional Basmati price has surged 87 per cent — from Dh8.5 to Dh13 per kilo. The price of US-style Thailand rice has almost surged by more than 70 per cent, from Dh40 to Dh70 per 20 kilo bag.

Market analysts said the shortage of rice supply will further inflate prices in the UAE, where core inflation is estimated to be around 13 per cent this year. Deepak Thawani, an expert on commodities, said prices of rice in the UAE are unlikely to return to earlier levels in the near future as global demand for rice would continue to outstrip supply, particularly with hopes of an export relaxation by India fading.

Globally, rice prices have skyrocketed by around 76 per cent between last December and April, according to the UN Food and Agriculture Organisation Rice Price Index. Experts blame the trend on higher energy and fertilizer costs, greater global demand, droughts, the loss of rice farmland to bio fuel plantations, and price speculation. To avoid food scarcities in their own countries, major rice exporters have imposed export bans, taxes or caps.

Although the Indian government has set the minimum export price of premium traditional Basmati at $1,000 per tonne, the current market price is $2,500 per tonne, and for the medium type Basmati, price is hovering between $1,700 and $1,800 per tonne.

India's move to ban non-basmati rice exports and curb sales of the superior basmati variety triggered protectionist measures by other leading producers to secure supplies for the staple consumed by half of the world. The curbs trebled benchmark Thai prices. Prospects of a good harvest in India and some other countries have softened prices, prompting Cambodia to lift a ban on rice shipments it imposed two months ago, the first major Asian exporter to roll back such curbs.

According to the Food and Agriculture Organisation of the United Nations, global output of milled rice in 2008 will be 445.3 million tonnes, up 2.3 per cent from last year's record 435.2 million tons,. Consumption will rise 2.4 per cent.

/Khaleej Times/

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2008 China Sourcing Fairs in Dubai Expand 60 Percent

Global Sources announced today that its three upcoming China Sourcing Fairs in Dubai will be over 60% larger this year. The China Sourcing Fairs: Gifts & Home Products, Electronics, and Fashion Accessories, will feature manufacturers from Greater China. The co-located events will be held June 9-11, 2008, at the Dubai International Convention & Exhibition Centre.

Global Sources' executive director, Sarah Benecke, said: "We are exceptionally pleased at the commitment Greater China suppliers are making to the Middle East and to the event this year. The China Sourcing Fairs in Dubai are now the largest China-products exhibition in the Middle East."

The China Sourcing Fairs in Dubai serve importers and volume buyers in the Middle East and North Africa region who seek high quality products from competitive suppliers in Greater China. More than 7,100 buyers from 95 different countries attended last year's inaugural event.

More exhibitors, more product categories

While the 2007 Fair focused on Chinese exhibitors of gifts and home products, this year's show will again feature hundreds of gifts and home products exhibitors, plus add full exhibition halls of electronics and fashion accessories.

"As product life cycles shorten and companies look for new, exciting products from innovative and creative suppliers, we are thrilled to be able to offer buyers from around the region an even larger exhibition and expanded product categories from which they can choose," Benecke said.
"Product variety, reliable suppliers and cost-effective products have become even more important in this year of rising inflation," said Bill Janeri, Global Sources' general manager of the Middle East. "Buyers in the Middle East are actively looking for new ways to attract consumers, and finding new and interesting products that can deliver reasonable margins is one way they are doing it," Janeri added.

The Fairs in Dubai will feature:

China Sourcing Fair: Gifts & Home Products

About Global Sources

Global Sources is a leading business-to-business media company and a primary facilitator of trade with Greater China. The core business is facilitating trade from Greater China to the world, using a wide range of English-language media. The other business segments facilitate trade from the world to Greater China, and trade within China, using Chinese-language media.
The company provides sourcing information to volume buyers and integrated marketing services to suppliers. It helps a community of over 700,000 active buyers source more profitably from complex overseas supply markets. With the goal of providing the most effective ways possible to advertise, market and sell, Global Sources enables suppliers to sell to hard-to-reach buyers in over 230 countries.

The company offers the most extensive range of media and export marketing services in the industries it serves. It delivers information on 2.6 million products and more than 195,000 suppliers annually through 14 online marketplaces, 13 monthly magazines, over 100 sourcing research reports and 9 specialized trade shows which run 27 times a year across eight cities.
Suppliers receive more than 32 million sales leads annually from buyers through Global Sources online (http://www.globalsources.com/ ) alone.

Global Sources has been facilitating global trade for 37 years. Global Sources' network covers more than 69 cities worldwide. In mainland China, Global Sources has over 2,100 team members in more than 44 locations, and a community of over 1 million registered online users and magazine readers for Chinese-language media.

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First quarter exports of Dubai Chamber members climb to a record high

Exports of 6,592 members of Dubai Chamber of Commerce and Industry (DCCI) in the first quarter of 2008 reached a record high of AED 49 billion, posting a year-on-year growth of 36 % from the AED 36 billion for the same quarter of 2007. Compared to the AED 47 billion exports in the last quarter of 2006, the figure represented a 6 % increase, according to the Economic Bulletin of the chamber.

''The GCC countries remained to be the largest recipient of Dubai exports, with 45 % of total exports valued at AED 22.2 bn destined to the region, and an additional AED 3.5 bn or 7 %, within the UAE, the Bulletin said.

Saudi Arabia and Qatar, it noted, were the largest markets in the GCC, with total exports to these two countries posting respective quarter growth of 11 and 5 % to reach respective total values of AED 9.5 bn and AED 7.8 bn. In terms of growth, however, exports to Oman expanded most significantly by 36% to reach a quarter total of AED 1.9 bn.

On the other hand, total export to Kuwait during the quarter, valued at AED 2.2 bn, was just about the same level as in the previous quarter. Bahrain, though remaining to be the smallest GCC market for Dubai�s exports, nevertheless appeared to be an expanding market with exports growing by a little less than 5 % to reach AED 0.8 billion.

According to the fugures, about 33 % of Dubai�s exports were destined to India and to neighboring countries, with total value of AED 17.2 bn, posting a quarter growth of 3.2 %. Fastest growing markets were Jordan and India, registering respective growths of 18 % and 15 %. In terms of value, however, exports to Jordan, valued at AED 0.9 bn, was very much lower than the AED 2.4 bn exports to India.

On the other hand, significant contraction of export markets were noted for Libya and Yemen, with exports to these destinations declining by 28 % and 15 %, respectively. Exports to other destinations declined from AED 6.9 bn to AED 6.4 bn, for a quarter decline of 7 %.

By number of export shipments made during the quarter, 109 exporters remained to dominate exporting activities of Dubai Chamber members, making 200 or more export shipments each, with accumulated value of AED 20.8 bn, or 42 % of the total export value for the quarter.

The export performance monitoring system of the Dubai Chamber has been tracking a strong and continuing export performance of its member, beginning in the 2nd quarter of 2006, especially of those catering to large number of markets. However, the number of markets of a great majority of the exporters remained restricted to only about 3, limiting their exporting activities to less than 20 during the quarter. Thus, the need for support system to strengthen exporters� capabilities to access new markets remains a necessity.

/WAM/

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Dubai’s non-oil foreign trade surges 46 per cent to $58 billion

Dubai’s non-oil foreign trade volume, including free zones and customs warehouses, jumped 46 per cent in the first quarter of 2008, reaching $58.3 billion, against $39.9 billion registered during the same period in 2007.

During the period under review, Dubai’s exports recorded a phenomenal growth, soaring by 79 per cent, while re-exports went up by 73.5 per cent and imports grew by 49.7 per cent.

The latest statistics, compiled and released by Dubai World’s statistics department, show that Dubai's direct non-oil foreign trade, excluding free zones and customs warehouses, amounted to $39.2 billion during the first quarter of 2008, against $24.9 billion for the same period in 2007, showing an increase of $14.2 billion.

Sultan Ahmed Bin Sulayem, chairman of Dubai World, said: “The growth is fuelled by the government’s relentless efforts to upgrade the existing modern infrastructure of ports, airports and land transportation network.

India topped the list of Dubai’s direct import destination in the first quarter of 2008 with a share of 13.14 per cent of imports. India, China and Switzerland together accounted for 31.8 per cent of Dubai’s total imports, while imports from other countries accounted for 68.2 per cent.

As for Dubai’s exports, India again topped the list with 45.7 per cent, of the total exports, followed by Switzerland, with 13.5 percent of direct exports, and Jebel Ali Free Zone, with 3.68 per cent, while exports to other countries amounted to 37 per cent.

/CPI Financial/

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DUBAL expects to export 100,000 tonnes of aluminium to Japan

Dubai Aluminium Company Limited (DUBAL) expects to ship 100,000 tonnes of aluminium to Japan in 2008, the majority of which will be billet (52 per cent), followed by high purity aluminium (25 per cent), foundry alloy (11 per cent) and standard purity (9 per cent).

At present, DUBAL has the capacity to produce more than 950,000 metric tonnes of high quality finished aluminium products a year, comprising foundry alloy for automotive applications, extrusion billet for construction, industrial and transportation purposes and high purity aluminium for the electronics and aerospace industries,'' a company press relaese said on the DUBAL's participation at a Japanese trade show.

A strategic plan is unfolding, the ultimate goal of which is the realization of DUBAL's vision to become the fifth largest producer of primary aluminium in the world by 2015, by producing 2.5 million tonnes per year.

DUBAL, the world's seventh largest producer of primary aluminium, will once again showcase the company?s specialised alloy products that are used extensively by Japanese auto part manufacturers at the Automotive Engineering Exposition 2008.

The show, to be held from 21 to 23 May 2008 in Yokohama, Japan, provides a platform for manufacturers of automobiles, parts and material, testing and measurement equipment, software, car-electronics and related companies to exhibit their latest products and technology.

''This end-user market is an exact fit with our customer base in Japan, where we are a major supplier of premium quality to the automotive industry,'' says Mohammad Al Mutawa, Marketing and Sales Manager, Asia: DUBAL.

''Accordingly, the Automotive Engineering Exposition 2008 will give DUBAL further opportunities to network with various original equipment manufacturers (OEMs) of parts, as well as designers of OEM parts; and to demonstrate our capabilities, especially DUBAL's capacity to tailor-make alloys to suit customers' requirements.'' For example, DUBAL manufactures Silafont 36 - a special alloy for crash-sensitive motor vehicle parts for both cars and motor cycles - under licence from Reinfelden Aluminium of Germany. ''Various motor vehicle parts manufactured using DUBAL alloys will be on display including engine cradles, motorcycle chassis, safety belt rollers, and so on. Consultants will also be on hand at the DUBAL exhibition to demonstrate the mechanical properties and capabilities of our alloys,'' Al Mutawa adds.

The show in Japan will also give DUBAL special insight into new opportunities, technologies and developments in the automotive industry. This will help create awareness of DUBAL?s position at the top end of the aluminium sector, both in the Far East and globally.

''The current trends in the aluminium industry characterized by consolidation of the major players and simultaneous disintegration of integrated aluminium companies ? are prompting a move in the world market away from the conversion of equity metal into products towards the formation of alliance partnerships with independent metal suppliers,? continues Al Mutawa. ?Being an independent player with large additional volumes of metal coming on stream within the next three to five years, DUBAL is in a strong position to benefit from this trend.''

/WAM/

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Trade surplus to surge to $73b

Driven by higher oil revenues, the UAE's current account balance is projected to grow by a record $24.2 billion or 58 per cent in 2008 to $65.9 billion while the country's balance of trade is poised to surge 60 per cent to $72.5 billion in 2008, the International Monetary Fund (IMF) said.

In 2007, UAE's current account balance —the sum of the balance of trade (exports minus imports of goods and services), net factor incomes (such as interest and dividends) and net transfer payments (such as foreign aid) — rose by 16 per cent to $41.7 billion from $35.9 billion in 2006. The surge in the current account balance is driven by a record jump in exports of goods and services, analysts said.

According to the latest findings by the IMF, in 2008, the UAE's balance of trade will swell by $27.3 billion to $72.5 billion. In 2007, the country recorded a balance of trade of $45.2 billion, and in 2006 it was $38.7 billion. IMF's latest statistics projects UAE's exports of good and services to reach $206.5 billion in 2008 from $165.7 billion in 2007, while imports to grow from $120.5 billion in 2007 to $134 billion in 2008.

With a predicted 58 per cent growth this year, the current account balance will account for 27.5 per cent of the country's GDP in 2008. In 2007, current account balance accounted for 21.6 per cent of the GDP. According to IMF projections,

UAE's nominal GDP is expected to surge 24.5 per cent from $192.6 billion to $239.9 billion in 2008.

The upbeat current account surplus outlook given by the IMF is contrary to the forecast made by Oxford Economics, a world-leader in economic forecasting. According to Oxford Economics, despite the pick-up in UAE's non-oil revenues as the economy continues to diversify, the country's current account surplus is poised to decline to about 7.5 per cent of GDP in 2008 and to 3.5 per cent in 2009.

A country's current account includes, apart from its balance of trade, other transactions such as income from the international investment position as well as international aid. If the current account is in surplus, the country's net international asset position increases correspondingly.

According to the IMF, from 2002, UAE's current account surplus has been on an upswing, reaching $7.6 billion in 2003, $10.3 billion in 2004, and more than doubling in 2005 at $24.3 billion, and reaching $35.9 billion in 2006, and $41.7 billion in 2007.

Over the medium term, it is expected that the current account position will continue to be in surplus, supported by expected strong performance of non-oil exports. This will lead to further accumulation of official foreign assets. During the period 2008-2012, it is expected that the current account surplus to average 18 per cent of GDP.

UAE external debt constitutes mostly foreign liabilities of UAE commercial banks and private institutions. It is estimated that the UAE foreign liabilities have almost tripled over the past two years. For the period 2008-2012, it is expected that UAE's external debt to average 61 per cent of the GDP. Presently, there are no signs of external debt vulnerability associated with such borrowing given that UAE external position is a net creditor (i.e. foreign liabilities are more than offset by UAE foreign assets), but it would need to be monitored.

/KhaleejTimes/

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Dubai Diamond Trade +32% in 1Q07

The Dubai Diamond Exchange (DDE) reported that Dubai’s rough diamond trade increased 32 percent to $1.5 billion in the first quarter of 2008, boosted by a rise in both exports and imports.
Rough exports from Dubai grew 39 percent to $915.08 million during the three months, with sales to China showing the largest increase of 671 percent to $87.28 million.
Rough exports to Europe (including Belgium, the United Kingdom, Germany and Ireland) rose 50 percent to $458.23 million, and exports to India grew 19 percent to $226.77 million. Dubai’s rough exports also rose significantly to South Africa (by 75 percent) and to the United states (by 32 percent.) Declines were seen in exports to Switzerland, Lebanon and Armenia.

Rough imports to Dubai for January through March grew 23 percent to $611.45 million boosted by a surge in supply from Angola.

Imports from Angola rose 60 percent to $24 million in the three month period, while rough diamond supply from the European Commission rose 36 percent to $180.88 million. Other increases in supply came from Switzerland, China and Lebanon.

Dubai imported less rough from India, Russia, the United States and the Democratic Republic of the Congo.

Separately, the DDE re-launched its rough diamond tenders in May, selling run of mine production from southern Africa.

DDE reported that 96 percent of goods were sold in the May tender with companies from Dubai, Antwerp, New York, Mumbai, and Israel participating.

A total 28,000 carats were sold for an undisclosed amount, DDE said.

The next tender is scheduled to take place June 8 to 10, 2008.
/Diamonds.net/

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Steel prices hit AED 4,500 per tonne

Steel prices in the UAE increased by 12.5 per cent since March to record-high Dh4,500 per tonne.

And an increase in regional steel production will have no impact on the soaring steel prices in the country, as the construction boom and cost of raw materials will only result in further rise, said traders.

Meanwhile, a report published by Meed forecasts dramatic growth in the steel industry in the region. Despite only accounting for two per cent of the global steel trade, the Middle East steel industry is undergoing rapid expansion to meet the needs of the fast expanding construction sector, said Middle East Steel 2008 report.

Middle East produced 21.1 million tonnes of raw steel in 2006 and consumed 41.6 million tonnes of finished goods. The production is expected to rise to 35 million tonnes and consumption to 60 million tonnes of finished by 2010.

Rizwan Sajan, chairman of Danube Building Materials, told Emirates Business the increased supply will not be enough to bring down the soaring price.

"Firstly the price of scrap is going up. Raw materials, such as billets, have become more expensive and in the UAE there is a massive demand for steel. It would be wrong to assume that the price rise is due to non-availability or shortage of steel," said Sajan, who deals with construction materials, such as steel, glass and timber.

Shyam Bhatia, Chairman of Alam Steel, said: "Gone are the days when raw materials used to determine the cost of the finished product.

"Today, because steel is high in demand, suppliers of scrap, especially from Turkey, CIS and Europe, are increasing the prices." /Emirates Business 24/7 2008/

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Dubai Chamber launches 18th issue of The Industrial Directory

The 18th issue of the Dubai Industrial Directory 2007-2008 is out. Launched by Dubai Chamber of Commerce & Industry, the bilingual directory in Arabic and English contains a listing of over 2,150 companies with 1,950 from the industrial sector and 200 from the services sector.

Dubai’s increasing dependence on non-oil sector and the emirate’s unprecedented economic growth make the industrial sector a driving force and the directory is seen as a strong trading tool for all businesses and consumers.

Said HE Eng Hamad Bumaim, Director General, Dubai Chamber of Commerce & Industry, “The Dubai Industrial Directory is a trustful reference and a gateway to services, products and companies in Dubai therefore Dubai Chamber has worked very hard to present this directory as part of one of its value-added services to its members. As the new edition includes an up-to-date information of Dubai industrial sector I would urge the local business community to take advantage of the information and statistics published in the directory.”

Added Buamim, “Under our new strategy of serving the members better, Dubai Chamber is doing its best in coping with the latest economic changes and is working non-stop to provide and upgrade its services for its ever increasing list of members. Besides the listing of manufacturers, contractors, suppliers and companies in Dubai, the new directory also provides useful information about the infrastructure and related government bodies as well as names of companies operating and maintaining manufacturing plants and other factories.”

Buamim praised the efforts of the Express Print (Publishers) LLC for supervising the publication of the Dubai Industrial Directory 2007-2008, and the company’s keen interest in presenting the new directory with high quality printing features and spelling accuracy of the names and addresses of companies and its related information according to alphabetical order.

Rakesh Puri, Chief Executive of Express Print (Publishers) LLC, compliers of the directory informed that the Dubai Industrial Directory 2007-2008 is an indispensable guide for those who are having business activities in Dubai as the directory gives detailed information about industrial firms operating in the emirate and is a handy reference book.

The new directory contains five sections including General Information in industrial sector; Alphabetical Listing – Manufactures; Classified Section – Products; Alphabetical Listing – Industrial Services and Classified Section – Industrial Services. The first section contains structural features as well as valuable information on the potentialities and areas of industrial investment as well as incentives available. It also deals with the procedures involved in setting up a new unit besides detailing the main advantages of operating in free zones.

The second section that contains an alphabetical index of names of industrial firms gives details of the 1,950 industrial companies registered with Dubai Chamber along with their location, range of products and vital information about the manufacturing units while the Classifieds Section – Products in section three categorizes more than 430 marketable and exportable products that are numerically grouped under 24 main categories. Here too, the alphabetical index is a big help in searching for relevant information about the industrial activity.

Section four deals with the industrial services enlisting the names of 200 companies providing essential services or practicing activities closely related
to the industrial sector as section five has the classified listing of firms providing vital services to the industrial sector under different business categories.

Initially, Dubai Chamber has published 8,000 hardcopies of the Dubai.
Industrial Directory 2007-2008 in Arabic and English, in addition to 4,000 related CDs in English and 1,000 CDs in Arabic. The Chamber will also distribute free copies of the directory to embassies, consulates and trade centers, in addition to business councils in Dubai, local and federal government establishments, universities, welfare and social associations, cultural and sports clubs, commercial missions and delegations and 5-4 and 3-star hotels.

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Dubai auto spare parts trade values AED18.22 billion in 2007

Dubai's automobile spare parts trading sector recorded an impressive growth of 29.64 per cent in 2007 for a value of AED18.22 billion, compared with AED14.05 billion in 2006, according to figures released Sunay by Dubai World's Statistics Department.

The strong growth of the sector has prompted the Statistics Department to take part in the Automechanika Middle East, the region's leading trade fair for the automobile sector, which will be held at Dubai International Convention and Exhibition Centre from June 1-3.

According to the Statistics Department's figures, import of automobile spare parts in 2007 accounted for 60.65 per cent of the total trade, which amounted to AED11.05 billion, while exports made up 2.33 per cent (AED 425 million) and re-exports 37.02 per cent (AED 6.75 billion) Nassim Al Mehairi, Acting Head of Statistics Department, said: "Our participation in the fair comes as a result of the study we conducted on the thriving automobile spare parts sector in Dubai. Through such a platform, we are seeking to strengthen the department's relations and enhance communication with the various economic sectors in the emirate in particular and the UAE in general.

''We also aim to promote the importance of statistics centres in outlining future business trends by relying on scientifically-documented data, which is an indicator of consumer preferences and market performance." "The Statistics Department has adopted a carefully planned mechanism to share its data and analysis on various sectors, through participation in trade fairs and exhibitions, utilization of technological tools like CDs and publication of reports and analyses through media. This information helps determine the primary markets that attract exhibitors," Nassim Al Mehairi added.

The automobile spare parts trade has been recording steady growth in Dubai over the years, the department study revealed. Ms. Al Mehairi noted that Japan remained the leading exporter of spare parts to Dubai. It again topped the list of major exporters in 2007 for a total value of AED 2.7 billion. Germany was second with exports of AED1.75 billion, followed by China with AED1.56 billion.

"As far as export from Dubai over the same period is concerned, Libya was in the lead with AED 31.3 million, followed by the United Kingdom and Yemen with AED30.5 million and AED30.2 million respectively," said Ms. Al Mehairi.

The top three re-export destinations in 2007 were Iran (AED2.13 billion), Iraq (AED633 million) and Russia (AED331.5 million). WAM

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Dubai traders' expectations stay upbeat

But small traders are less optimistic than larger companies

While there had been no significant statistical change in traders’ expectations between 2007 and 2008 in Dubai, large traders who employ more than 20 workers appeared to be more optimistic than small traders with less than 10 workers. In addition, the machinery and industry inputs sector had a higher-than-the-average expectation score.

There observations were the results of a survey conducted by the Dubai Chamber in the fourth quarter of 2007 on 1,190 traders, of which 441 responded, on their expectations for the year 2008.

The results of the survey were recently revealed during the 2008 Economic Seminar hosted by the Dubai Chamber, which included the presentation of their study about inflation in the UAE, as well as that of a study made by the Center for Responsible Business (CRB), which marked the second annual survey of attitudes and practices of corporate social responsibility (CSR) in Dubai during the summer of 2007.

On the survey on traders’ expectations for 2008, the business sectors covered included vehicles, textiles, consumer goods, household goods, industry inputs, machinery and those in general trade. Sub-domains included employment size such as those with less than 10 employees (small), 10-19 employees (medium) and 20 and over employees (large).

According to Marietta Morada, senior research staff at Dubai Chamber, who made the presentation of the survey results on trader’s expectations for 2008, on a scale of one to 10 with 10 representing the best expectation, the traders’ expectations for 2008 was 6.6. this score represented a slight increase from 2007’s score of 6.5, but is considered to be statistically insignificant, according to Morada. The average score of traders’ expectations during the first two years of the annual survey in 2005 and 2006 was 6.9.
“Overall, I would say that the traders of Dubai are maintaining a favorable assessment of the entire trading sector,” Morada said.

Marked decline

With regards to the business sectors, the textile traders’ group appeared to have the lowest expectations of less than six. However, in terms of a statistically significant decline in the average score, the consumer goods sector fell from close to seven in 2007 to less than 6.5 in 2008 while household goods also showed a declining pattern from a high of 7.5 in 2006 to just slightly above six in 2008.
On the other hand, in terms of a rising expectation, the industry inputs sector and the machinery sector were the ones with the highest expectations for all the years of above seven in 2008 from above 6.5 in 2007.

As far as the size of traders in relation to the number of employees, those employing on to nine workers appeared to have a relatively stable expectation score but had the lowest at below 6.5. The medium-sized traders, with employees numbering between 11 to 20, declined slightly but maintained an above 6.5 score. On the other hand, large traders with more than 20 workers had the highest increase in their expectation score from seven in 2007 to above 6.5 in 2008. Exporters and the mixed trade sector remained stable at above 6.5.

In terms of the general market demand for their product, majority of the traders indicated that they have good expectations for the year. However, in 2008, the survey indicated a shift from good and very good to average.
“There is no downturn of expectation this year,” Morada observed. “It will just be maintenance of expectations from last year. The year 2008 is expected to be similar to the previous year.”

Citing the reasons for the traders continued positive outlook in 2008, population growth was the top reason at above 75 per cent. Other reasons included improving buying capacity of the population as the population of Dubai shifts into people with higher buying capacity, favorable preferences, and expectations of product prices to increase, expansion of product variety, no fear of competition, increasing outlets, increasing festivals and favorable trading regulations.

Negative outlook

On the other hand, those with a negative outlook cited reasons such as difficulty in supply procurement, rising process of goods for resale, declining product quality, declining buying capacity, unable to establish new stores and outlets, no new festivals and fairs, and perception that certain government rules are unfavorable.
For the traders’ sales expectation in 2008, the survey revealed a rising expectation to 56.7 this year, up from 54.2 in 2007.

On the issue of competitiveness of traders, while the 2007 expectations survey indicated that, it is in pricing where traders feel they are most competitive; traders have now shifted to other aspects of trading such as product quality, ease of purchase, inventory management, advertising and location.

With regards to the factors that trader feel are affecting or limiting their business potential, high property rentals and high operating costs remained as the top two factors in 2007 and 2008. However, while keen competitions were cited as the number three limiting factor in 2007, this has been replaced by high transport costs in 2008. The keen competition factor dropped to number five as the traffic situation remained the top foul limiting factor in 2007 and 2008.

Meanwhile, another study at the Dubai Chamber has found that world prices of imports currency depreciation, rents and money supply have been fuelling inflation it the UAE economy. The world commodity prices have been increasing during the last five years, the IMF world commodity price index has more than triple between the beginning of 2007 and the start of the second quarter of 2008.

Rising demand

Prices for energy, metals and agricultural goods have all risen as demand for commodities have increased in a growing world economy. At the same time, suppliers have remained relatively stagnant. The rising commodity price increase the supply costs for businesses and this follows through higher prices for consumers.

The UAE currency, the dirham, is pegged to the US Dollar in a fixed rate and the US Dollar has been depreciating against the world major currencies.

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Dubai Customs joins AskDubai service

Dubai eGovernment has announced that Dubai Customs has become the 15th government department to join the AskDubai service, an initiative that facilitates interaction between the government and its public through a single point of contact.

Through the AskDubai call centre, the public can enquire about various services offered by Dubai Customs through multiple channels of communication.

AskDubai is a unified, bilingual contact centre connecting to government departments in Dubai through multi channels including a call centre, internet chat, e-mail and fax. It integrates key features of Customer Relationship Management, which has become a crucial component in many IT-enabled customer care services. AskDubai utilises industry-leading technologies that ensure each call gets immediate attention from an agent or an automated voice response system.

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The Government calls on traders to import 15 food products without conditions

The Ministry of Economy has called on traders, corporations and cooperative societies to import without conditions 15 food items, which have been removed from register of trade agencies.

Mohammed Ahmed bin Abdul Aziz Al Shehi, undersecretary of the ministry said that the traders, corporations and cooperative societies could exploit amendments of federal law number 18 of year 1981, on regulation of the trade agencies, which was issued in June 2006 based on 2005 decision, on writing off 15 trade agencies, to import these items into UAE markets without any condition to curb soaring prices and inflation.

He added that the written off items include dry milk, condensed milk, frozen and canned vegetables, child food, child milk, chicken, food oil, rice, flour, fish products, meet products, tea and coffee.

Al Shehi underlined that the aim of liberalising the basic food items is to eradicate monopoly and grouping, which hike prices, adding that the ministry also aims at creating competition among importers and traders- a move he said could reflect positively on market and consumers.

He noted that the ministry encourages cooperative societies to collectively import basic food items through the cooperative union as this move will help them offer preferential and competitive prices in the market in favour of consumers and local market as well.

Al Shehi said that the ministry would notify traders, corporations, companies, cooperative societies and custom checkpoints about the liberalisation of these basic food items. WAM

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Ingham Bloodstock, has been sold to the Dubai-owned Darley Stud

In a major shake up of the racing industry, Australia's biggest horse breeding empire, Ingham Bloodstock, has been sold to the Dubai-owned Darley Stud, in a business deal reported to be worth at least half a billion dollars.

A chicken farmer first, Bob Ingham, created the bloodstock enterprise with brother Jack after inheriting a brood mare when their father Walter died more than 50 years ago.

The Ingham's racing dynasty has dominated the track for a generation, owning the biggest breeding facility in the country, employing seven thousand people and breeding some of our country's best loved champions.

Over the passed decade, the Ingham's association with trainer John Hawkes has seen the stable claim almost 60 Group One winners.

In 2007, Bob Ingham was the biggest buyer at the Easter Yearling sale and a couple of years earlier paid a then record $2,5 million for Makybe Diva's little brother who now races as Musket.

Sweet Embrace, the 1967 winner of the Golden Slipper, was the Ingham Stable's favourite, only challenged 30 years later by Octagonal, who won the 1995 Cox Plate and the following month won a staggering four Group One races in less than a month.

Darley, which is owned by Sheikh Mohammed Bin Rashid Al Makhtoum, will take over the Woodlands stud and training properties, and hundreds of racehorses, stallions and broodmares.

The sale is subject to approval by the Foreign Investment Board.

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Dubai-China trade rises by 47 in 2007

Trade between Dubai and China, which has been increasing steadily over the past five years, soared to a 47% high in 2007 (a value of AED 22.7 billion - about $6.18 billion). Dubai World's Statistics Department figures showed that there has been an increase in non-oil trade between the two countries from AED 48.4 billion (around $13.18 billion) in 2006 to AED 71.2 billion (around $19.4 billion) in 2007. This reflects a very positive trend in the economic relations between Dubai and China over a growing area investment in different sectors.

Sultan Ahmed bin Sulayem, Chairman, Dubai World, said: 'China and Dubai have excellent bilateral relations. China is a major trading partner for Dubai and we give high importance to further strengthening the relationship between the two countries. China has succeeded in building a very impressive economic base." Dubai World,said Bin Sulayem , is a major investor in China through its projects in Qingdao and Shanghai ports, and is looking to expand into other areas.The proposed visit to China by HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, comes within the scope of furthering cooperation and economic ties between the two countries, bin Sulayem added.

Figures recently released by Dubai World's Statistics Department show that the non-oil trade between Dubai and China maintained a steady upward trend during the past five years. There was an increase of 37.5% growth in 2004. In 2005 it was 30.7%. The rate of growth was 35.2% in 2006 and 47% in 2007.

Nassim Al Mehairi, Acting Head of Statistics Department, said that China came second in the list of Dubai's top trading partners in 2007 for the third consecutive year. It topped of the list for imports, which touched a total value of around AED 69.9 billion. China is twelfth as Dubai's export destination, for a value of around AED 661.2 million. It is also a major re-export market for Dubai, the value reaching around AED 622.3 million. WAM

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Dubai's cement imports surged 73.6% in 2007

Dubai's cement imports surged 73.6% (1.256 million tonnes) in 2007 compared to previous year. The rise is from 1.704 million tonnes in 2006 to 2.960 million tonnes in 2007, according to figures released by Dubai World's Statistics Department.

Last year's import performance came after the soaring increase of 184% (1.104 million tonnes) in 2006 compared to 2005 - from 600,000 tonnes to 1.704 million tonnes.

Nassim Al Mehairi, acting head of Dubai World's Statistics Department, said that the total value of Dubai's cement imports during 2007 was around AED 672 million against AED 374 million in 2006.

"Cement imports have soared during the past three years as a result of the unprecedented construction activities here that accompanied the overall economic boom in the UAE and the region. The sharp increase in oil prices is a major reason for this boom. This has led to more spending on infrastructure, especially on roads, bridges and other related projects. The positive economic atmosphere has also led to the creation of several new commercial and residential complexes and urban communities," she said.

Al Mehairi added that major projects such as the Dubai Metro, new airports, marine terminals and urban development show that Dubai's cement imports will continue growing at even higher rates in the coming years.

The Statistics Department figures show that China tops the list of countries from which Dubai imported cement in 2007, with 1.9 million tonnes amounting to AED 399 million. India follows, with 553,000 tonnes for the value of AED 134 million. The other top cement trading partners are Pakistan (255,000 tonnes for AED 71 million), Thailand (148,000 tonnes for AED 33 million) and Indonesia (71,000 tonnes for AED 20.7 million.) WAM

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DMCC plans to build cotton trade corridor

Dubai Multi Commodities Centre (DMCC) announced yesterday that it is proposing to build a cotton trade corridor through Dubai with the objective of establishing the emirate as a key link in the global cotton supply chain.

In this regard, DMCC has signed a Memorandum of Understanding (MoU) with Uzprommashimpeks, a trading company set up under Uzbekistan's Ministry of Foreign Economic Relations and International Trade. In 2007, global cotton production touched 26.74 million tonnes, with Uzbekistan being the second largest exporter after the US. Imports and re-exports through Dubai were nominal with major re-export destinations being Pakistan and Algeria.

The MoU, which coincided with the recent visit to the UAE of Islam Karimov, the Uzbekistan President, was signed by Ahmed bin Sulayem, Executive Chairman, DMCC and Mirzakhidov Khurshid, Chairman of the State Joint Stock Company, Uzprommashimpeks.

Elyor M. Ganiev, the Uzbekistan Minister of Foreign Economic Relations & International Trade "MFERIT," who was present at the signing of the MoU, said: "Uzbekistan and the UAE have a history of friendly relations, and we look forward to building on this through strengthening our economic partnerships. We welcome this MoU, which is one of many such steps being taken in this direction. In signing this MoU with DMCC, Uzbekistan supports the status of Dubai as an international centre for trade."

According to the terms of the MoU, Uzbekistan's cotton exports will be routed through the proposed cotton distribution hub in Dubai, for feeding Uzbek cotton into Asian markets. As a significant trade partnership between Uzbekistan and Dubai, this MoU will facilitate Uzbek cotton in gaining access to new markets in Asia.

The partnership also underlines DMCC's efforts in creating industry-specific infrastructure for facilitating physical trade in a wide range of soft commodities, including cotton. The Dubai-based, special purpose, DMCC-owned trading entity will offer online quotes and provide easy access to Uzbek cotton with convenient shipments to consumers in the sub-continent, China and other Asian countries.

In addition, DMCC will facilitate trade finance for cotton inventory purchased by traders and stored in Dubai through its indigenously developed Global Multi Commodities Receipt. (MENAFN)

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UAE continues to be the largest market for Mercedes-Benz vehicles

Mercedes Car Group Middle East and Levant today reported that it has had its best ever start to a year with deliveries for the first two months of 2008 up 556 to 3,179, over the similar period in 2007.
Sales for January rose 32% to 1,610 while deliveries in February were 1,569, up 12% on the same period last year.

The excellent figures come on the back of a record 2007 when deliveries of Mercedes-Benz vehicles rose seven% to 16,816.
The UAE continues to be the largest market for Mercedes-Benz vehicles with Saudi Arabia running second.

'We are seeing great opportunity across the Middle East and Levant with the market for luxury vehicles growing,' said Frank Bernthaler, Director, Sales and Marketing, Mercedes-Benz Cars, Middle East and Levant. 'Obviously, the buying public are realising that we have the range of premium sedans and SUVs that meets their requirements and this year with nine new models, including new versions of the SLK, SL, CLS and M-Class, arriving in the market culminating in the introduction of the GLK compact SUV, we are certain to end 2008 way ahead of the competition'.

To help Mercedes-Benz keep at the forefront of the premium vehicle market, Bernthaler revealed that distributors across the region were investing US$150 million in new premises including state-of-the-art showrooms and workshops in Abu Dhabi, Dubai, Kuwait and Jordan.

'This commitment to the brand will help us maintain our market leadership and provide our ever growing family of customers with service that no other manufacturer can match,' he added.
Unit sales at Daimler AG's Mercedes-Benz Cars division totaled 96,600 vehicles in February 2008, an increase of 18% from the figure recorded for the same month last year (82,000 units) setting a new benchmark.

In addition, deliveries of Mercedes-Benz, AMG, smart, and Maybach brand vehicles over the first two months of the year rose 17% to the record level of 187,000 units (Jan./Feb. 2007: 159,700).

The Mercedes-Benz brand also set a record in February by posting a sales increase of 13% to 87,800 units worldwide (February 2007: 78,000). (AME Info)

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