Brief about Industries in UAE
The United Arab Emirates (UAE) is a country locates in the Middle East, known for its abundant oil reserves and its modern, progressive infrastructure. The country has undergone rapid development and diversification of its economy over the past several decades, and today is home to a number of thriving industries. Some of the most prominent industries in the UAE include:
Oil and Gas: The UAE is one of the largest oil-producing countries in the world, and the oil and gas industry continues to play a significant role in the country’s economy.
Tourism: The UAE is a popular tourist destination, attracting millions of visitors each year. It is driven by the country’s luxurious hotels, shopping centres, and attractions such as Burj Khalifa, and the artificial island of Palm Jumeirah.
Trade and Logistics: The UAE is a major trading hub for the region, with the country’s port and airports serving as key transportation and logistics centres. Dubai, in particular, has positioned itself as a global centre for re-export trade, with goods flowing through the city en route to markets throughout the region.
After oil and gas, the UAE's rubber and plastics sector is among the country's biggest and most significant industries. The UAE rubber and plastics business has advanced globally in recent years thanks to its high quality and added value, giving it access to more than 60 international markets across six continents.
Role of major industries in UAE economic development
1. Finance: The UAE has emerged as a leading financial centre in the region, attracting foreign investment and providing access to capital for local businesses. The country's advanced banking sector, stock exchange, and private equity and venture capital ecosystem have contributed to the growth of the finance industry.
2. Manufacturing: The UAE has a growing manufacturing sector, which includes the production of petrochemicals, steel, aluminium, and textiles. The country's free zones and business-friendly environment have attracted manufacturers from around the world.
3. Agriculture and fishing: Although the UAE is mostly desert, the country has made significant strides in developing its agriculture and fishing industries. The UAE's farmers and fishermen produce a variety of crops, livestock, and seafood, which are consumed locally and exported to other countries.
4. Retail Sector: One of the main economic pillars in the UAE is the retail industry, which is expanding and innovating quickly. There are fresh potential and difficulties for the UAE's retail sector, which is home to some well-known international companies. Every year, a large number of foreign brands travel to the nation in an effort to grow their business. Even small and new businesses hope for the chance to create a presence in the UAE. The desire to open retail businesses in the UAE is not restricted to large, well-known corporations.
5. Rubber and Plastic Sector: One of the biggest and most significant sectors in the UAE after oil and gas is the rubber and plastics sector. The rubber and plastics business in the UAE has advanced significantly internationally in recent years due to its excellent quality and added value, opening up access to more than 60 global markets across six continents.
The nation intends to capitalise on the advantage of local polymer feedstock to raise production levels in this industry and expand its plastic conversion portfolio: 569 Converting Plastic to Rubber. The nation has a great opportunity to take advantage of new plastic conversion items for both export and import.
Having access to polymer resin feedstock locally gives the nation special competitive advantages.
Top 10 Exports from UAE and its destinations
1. Crude Petroleum: Crude petroleum is the UAE's top export and is one of the country's most important sources of income. The UAE is a significant producer and exporter of crude oil, and it is the fourth-largest producer in the Organization of the Petroleum Exporting Countries (OPEC). The country's oil reserves are estimated to be around 105 billion barrels, which is the seventh-largest in the world.
In 2019, the UAE exported approximately $55.2 billion worth of crude petroleum, which represents 34.5% of the country's total exports.
Majority of exports goes to Asia, in which China is the top buyer of crude oil from the UAE, which is around 30% of the country’s total exports. India is the second largest buyer, with a share of around 16%, followed by Japan, South Korea, and the United States.
2. Refined Petroleum: The UAE's second-largest export is refined petroleum, which includes products such as gasoline, diesel, and jet fuel. According to the Observatory of Economic Complexity, in 2019, the UAE exported approximately $15.4 billion worth of refined petroleum, which represents 9.6% of the country's total exports. Refined petroleum is a significant source of income for the UAE, and the country has invested heavily in developing its refining capacity and petrochemical industry.
The UAE exports most of its refined petroleum products to countries in Asia, particularly India and Pakistan. According to the International Trade Centre, in 2019, India was the top destination for UAE's refined petroleum exports, accounting for approximately 17.4% of the total exports. Other major markets for UAE refined petroleum products include Pakistan (10.3%), Oman (8.2%), Yemen (6.3%), and the United States (5.5%).
3. Gold: Gold is one of the major exports of the UAE and is the country's third-largest export product. According to the Observatory of Economic Complexity, in 2019, the UAE exported approximately $12.5 billion worth of gold, which represents 7.8% of the country's total exports.
India is the largest buyer of gold from the UAE, accounting for around 36% of the country's total exports, followed by Switzerland (23%), Turkey (10%), and Hong Kong (6%), according to data from the UAE Federal Competitiveness and Statistics Authority.
4. Jewelry: The UAE's jewelry exports include a range of products, such as gold, diamonds, and other precious metals and stones. The country is known for its high-end jewelry stores and luxury shopping malls, and Dubai, in particular, has established itself as a key destination for buyers of luxury goods. The UAE also has a significant gold refining industry, which produces gold bars and other products for export.
The UAE's jewelry exports are primarily directed to countries in the region, such as Saudi Arabia, Qatar, and Kuwait, as well as to other markets around the world, including India, Switzerland, and the United States.
5. Refined Copper: The fifth-largest export of the UAE in 2020 was refined copper, which accounted for approximately $2.5 billion or 1.5% of the country's total exports. Refined copper is a valuable industrial metal that is used in a variety of applications, such as electrical wiring, construction, and manufacturing.
The UAE's refined copper exports are primarily directed to other countries in the region, such as Oman, Bahrain, and Saudi Arabia, as well as to other markets around the world, including China, Japan, and South Korea.
6. Broadcasting Equipment: The UAE's broadcasting equipment exports include a range of products, such as broadcasting and transmission equipment, studio equipment, and related components and accessories. These products are exported to a variety of markets around the world, including other countries in the Middle East, Africa, Europe, and Asia. According to data from the International Trade Centre, the UAE exported approximately $2.2 billion worth of broadcasting equipment in 2020, which represented 1.3% of the country's total exports.
7. Petroleum Gases: The seventh-largest export of the UAE in 2020 was petroleum gas, which accounted for approximately $1.8 billion or 1.1% of the country's total exports. Petroleum gas, which includes liquefied propane and butane, is used in a variety of applications, such as heating, cooking, and transportation. The UAE's petroleum gas exports are primarily directed to countries in the region, such as India, Pakistan, and Bangladesh, as well as to other markets around the world, including Japan, South Korea, and China.
8. Raw Aluminium: the country is a significant producer of aluminium and exports a range of aluminium products, including aluminium alloys and semi-finished aluminium products such as sheets, coils, and foils.
The UAE's aluminium exports are primarily directed to other countries in the region, such as Saudi Arabia, Bahrain, and Oman, as well as to other markets around the world, including the United States, Germany, and Italy.
9. Rubber and Plastics: The UAE's rubber and plastics exports are primarily directed to other countries in the region, such as Saudi Arabia, Oman, and Bahrain, as well as to other markets around the world, including India, the United States, and China. The country has made significant investments in the development of its plastics industry, with a particular focus on manufacturing and exporting high-value products such as specialized packaging materials, plastic sheets and films, and synthetic rubber products.
10. Perfumes and Cosmetics: The country has a well-established cosmetics industry, with Dubai serving as a hub for the regional trade of perfumes, cosmetics, and other personal care products.
In 2020. The UAE exported approximately $5.5 billion worth of perfumes and cosmetics products, accounting for about 3.5% of the country's total exports.
The UAE's perfumes and cosmetics exports are primarily directed to other countries in the region, such as Saudi Arabia, Iraq, and Kuwait, as well as to other markets around the world, including the United States, France, and the United Kingdom.