India to emerge the top export destination by 2030

India is projected to overtake Japan as the top overall export destination of the UAE by 2030 according HSBC Trade Forecast.

The two largest export destinations for the UAE in 2014 — among the 25 HSBC Trade Forecast countries — were Japan and India, with a 11 per cent and 6 per cent respective share of exports. Japan remains an important trade partner for the UAE, especially for aluminium and crude oil, but its dominance as the top export destination will be gradually eroded as exporters seek more non-oil opportunities.

“India’s continued rapid pace of economic expansion drives a move to the top export destination. The longstanding commercial and cultural links with India support this, and the UAE plans to develop a high-skilled, knowledge base driving bi-lateral trade with India,” said Kwabena Ayirebi, Regional Head of Global Trade and Receivables Finance for HSBC Mena.

Meanwhile exports to China, which receives over 50 per cent of its oil imports from the Middle East, is projected to increase at around 10 per cent per annum from 2015-2030. As a result, China ascends from the fifth most important export destination in 2014 to third by 2030, displacing Korea and Singapore.

Exports of aluminium have been at the forefront of diversification strategies, with expansionary projects by state-owned Emirates Global Aluminium (EGA) helping to boost production capacity for the future. Unclassified goods, such as high value items (particularly gold, diamonds and jewellery) will also add around 12 per cent to export growth in the decade to 2030.

Photo : reuters