Day: July 5, 2022

DUBAI, Abdul Aziz Al Ghurair, Chairman of Dubai Chambers, recently met with heads and members of business groups in Dubai to discuss new ways that this sector can enhance its role and contribution to the emirate’s economy and strengthen public-private sector partnerships.

The virtual meeting, was joined by Hamad Buamim, President and CEO of Dubai Chambers, and 45 participants representing various business groups in Dubai. The meeting provided a platform for business groups to highlight market gaps and share their recommendations for improving ease of doing business in Dubai.

Addressing participations, Al Ghurair highlighted the crucial role of business groups in driving private sector growth and revealed that 28 business groups representing 30 economic sectors now operate in Dubai under the umbrella of Dubai Chamber of Commerce.

Al Ghurair shared new details about a major initiative that the Chamber is planning to launch later this year, which is designed to enhance the economic contribution of business groups. He noted that the programme supports the objectives of the Dubai Chambers strategy, which has expanded the organisation’s efforts to ensure a business-friendly regulatory environment in Dubai and achieve the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, to elevate the emirate’s position as a global business hub.

He added that the new initiative is one of many major projects in the pipeline that will be rolled out later this year by Dubai Chambers and the three chambers operating under its structure, namely Dubai Chamber of Commerce, Dubai International Chamber and Dubai Chamber of Digital Economy.

Al Ghurair concluded by reiterating Dubai Chambers’ commitment to supporting the interests of the private sector and described the strategic partnership between public and private sectors as a key factor that continues to drive Dubai’s sustainable development and enhance economic competitiveness.

Source: Emirates News Agency

DUBAI, The UAE has maintained its position among the top global commodity trading hubs, according to the third iteration of the Commodity Trade Index presented in DMCC’s latest Future of Trade 2022 report.

The Commodity Trade Index assesses the role of ten key trading hubs within global trade, ranking these countries in terms of their significance in the global commodities trade. The rankings are based on an analysis of ten indicators across three major factors: locational and trading partners, commodity endowments and institutional factors.

The 2022 Commodity Trade Index sees the United States maintain its position as the top global trading hub, scoring 58 percent overall, despite not recording the highest score in any of the three individual index pillars. Having led the index in its first iteration in 2018, the UAE stands in the second place with a score of 50 percent. The Netherlands entered the top three hubs for the first time, scoring 48 percent. Despite the rankings remaining relatively similar between 2020 and 2022, the spread between the top and bottom hubs became wider, suggesting that the pandemic has widened pre-existing gaps between countries in terms of their importance for commodities trade.

Feryal Ahmadi, Chief Operating Officer, DMCC, said, “Over the past few years, the commodities market has been heavily impacted by the pandemic and the associated supply chain issues. This has been compounded by additional macroeconomic factors such as heightened geopolitical tensions. The global economic environment remains challenging, however, the Commodity Trade Index proved that the UAE has firmly maintained its position as a world leading trade hub. Building on this momentum, DMCC will continue to prioritise increasing the ease of doing business and promoting the huge commercial potential that Dubai possesses.”

The UAE recorded the top score for commodity endowment factors (74 percent), well ahead of all the other trading hubs, driven by its large natural supply of oil. The country came third for institutional factors (72 percent), largely due to its attractive tax rates and strong performance for logistics of trade.

The rankings for the other global commodity trade hubs include, Switzerland (48 percent), the United Kingdom (45 percent), Hong Kong (44 percent), Singapore (41 percent), China (32 percent), South Africa (21 percent) and Nigeria (16 percent).

The Future of Trade report is a synthesis of global viewpoints based on research, data and interviews with business leaders and trade experts. The 2022 edition of the report examines the changing nature of global trade, highlighting the role that geopolitics, technology and global economic trends will play in the future of trade, with a focus on trade growth, supply chains, trade finance, infrastructure and sustainability. In addition, it provides tangible recommendations to governments, policymakers and businesses that target trade growth.

Source: Emirates News Agency

DUBAI, Global trade, which hit a record high of US$28.5 trillion in 2021, is expected to grow steadily in 2022 and the coming years as a new era of multilateralism – underpinned by regionalisation, trade in services, innovation and sustainable trade – counters the impact of the slowing global economy, according to Dubai Multi Commodities Centre’s (DMCC) latest Future of Trade 2022 report titled ‘A New Era of Multilateralism’.

While trade growth may be somewhat slower in 2022 compared to 2021, overall, there is reason for optimism, notwithstanding well-flagged issues such as the fallout from the war in Ukraine and from the pandemic. Pent-up demand from the COVID-19 shock is already driving trade in goods; a rebound in trade in services is set to follow.

Ahmed Bin Sulayem, Executive Chairman and Chief Executive Officer, DMCC, said, “After a record year for trade in 2021, we expect global trade growth to remain resilient in 2022, albeit with some slowdown in pace. Beyond the immediate support from a rebound in pent-up demand from the COVID-19 shock, there are also more long-term changes underway that should support cross-border trade in the years ahead – these include increased regionalism, strength in services trade, innovation, and climate politics.

“There is a joint imperative for the future of trade and the building of more crisis-resilient economies – financing the shortfalls in infrastructure and in trade finance. Tackling both in a way that is environmentally sustainable will be crucial. So too will be closing the digital divide between countries and sectors to bring the benefits of global trade to all.”

Geopolitics, as ever, will shape the trade landscape in the 2020s, building on new developments in regionalism, bilateral trade, and global investment flows. Nationalist – as opposed to protectionist – trade policies are likely to continue to dominate. A new multilateralism is likely to take hold. Old forms of multilateralism are likely to fade, while new forms, such as increased regionalism, will drive cross-border trade in new sectors, including predominantly in digitalisation and sustainability.

Bilateral, regional, and multiparty trade deals are increasing. In the UAE, the government is aiming to sign 27 bilateral Comprehensive Economic Partnership Agreements with key trading partners, including eight this year, as it looks to boost trade and foreign direct investment. Elsewhere, China and Taiwan’s stated bids to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, in addition to the United Kingdom’s ongoing accession process, offer opportunities for trade and bilateral investment.

Under the new trade paradigm, cross-border investment and trade will become increasingly market-seeking rather than efficiency-seeking. The intersection between trade liberalisation and digital transformation will continue to be a defining juncture, and the build-up of compatible and connective networks will be critical.

Developments in virtual assets, including central bank digital currencies, stand to reshape global finance, trade, and investment. Innovative technologies continue to drive productivity gains, sustainable development, and growth accelerations around the globe. Trade and technology will continue to seek synergies in 2022 and beyond.

Feryal Ahmadi, Chief Operating Officer, DMCC, said, “Robust global trade will help build resilience, sustainability, and economic growth in 2022 and beyond by providing countries with goods and services. Global value-chain restructuring will continue to be a source of trade normalisation and of reinvigorating recovery in global growth and cross-border trade, facilitating economic diversification and allowing countries to be less dependent on a limited number of importers, exporters, and sectors.”

The Future of Trade 2022 report puts forward a number of key recommendations to business and government.

According to the research, the new era of multilateralism will be shaped by three tectonic shifts in the global economy.

Firstly, there will be a natural migration towards lifting barriers as countries become increasingly sensitive to the costs of protectionism, which many countries saw de facto when the pandemic froze global trade.

Secondly, inflation will continue to climb, and central bank policy-tightening will become more pronounced to combat the rise in prices. This makes borrowing more expensive worldwide, lowering import demand and deteriorating export competitiveness.

Finally, global trade will be impacted by the climate crisis in terms of both the economic shocks and opportunities it will bring. While government intervention may be needed to limit potential economic losses, we should see increased demand growth for sustainable goods in both developed and developing economies, creating new opportunities for sustainable trade.

Source: Emirates News Agency