The Impact of Dubai Exports Activities on Export Performance … · 2015-08-18 · The Impact of Dubai Exports Activities on Export Performance (August 2012) Trade Balance in 2011

The Impact of Dubai Exports Activities on Export Performance (August 2012)


Summary

DE has set its strategy to achieve its KPI’s and fulfill stakeholders’ needs.

DE measures its performance by monitoring export at macro level, conducting stakeholders’

annual surveys and in the short term log the transactions concluded by exporters that were

achieved with DE assistance.

During 2008-2011 Dubai Exports focused its major activities of exhibitions ,missions and other

export services on 10 partner countries selected to cover GCC ,Europe, Africa ,Asia and Australia

In August 2012 Dubai Exports carried out a comprehensive study to assess the performance of

trade with these partner countries thereby identifying which markets were mostly impacted by

DE activities

Overall the study revealed that exports& re-exports to all partner countries in which DE

organized activities(except Australia) increased at rates between about 3% to 100% p.a. for the

period 2008-2011 with & re-exports to KSA, Indonesia and Germany exhibiting the highest

average annual growth , indicating the importance of these partners and the positive effects

of DE activities

Qatar, South Africa and Saudi Arabia has been the top markets in which the impact of DE

activities on trade flow was significantly felt, resulting in reduced negative trade balance in

favour of UAE .Qatar has been the only country among the trade partners with whom trade

balance with UAE was positive i.e. exports and re-exports exceeded imports by as much as 3.8

Billion AED in 2011

On the dimension of exported products ,the study showed interesting conclusions that

Precious Metals Plastics, Aluminum ,Iron & Steel & Articles ,Copper & articles and Edible Oils

& Fats were the top exports to the trade partners in order of importance and Plastics and Edible

oils were mainly exported to European partners probably because of the need for high quality

food and food plastic packaging , while Precious Metals have more global markets and GCC

market was particularly the important market for Iron & Steel and Copper & articles,

presumably because of the construction boom witnessed in the region.

An important Overall conclusion of the report :DE market and product focuses sustained a

development in market and product diversification of Dubai exports& re-exports

The transaction report for the first six month revealed that total value of business estimated to

be realized on the basis of repeat order exceeds 4 Billion AED

Also it was found that the main markets for which largest numbers of transactions were

concluded were KSA, Qatar, and India.

By value the largest transactions were for KSA and Morocco at 182 Million AED (85%) and 12

Million AED (6%) respectively.

By region: Top transaction values were for GCC 85%, Africa (7%), and Asia (1%)


Product-wise, the report showed that about 14 type of transactions were for construction

related products and 9 for food and related products. Activity-wise ,Exhibitions and Exports

Assistance programs were the two main drivers of export success while the majority of the

exporters expressed their satisfaction of the services that DE offer to them and categorically

indicated that DE assistance has actually helped them improve their export performance.

The Needs Assessment survey for 2012 revealed important feedback which are summarized in

the following:

In addition to the traditional lucrative market in GCC, exporters are now looking for new

markets mainly in Africa, Asia and Europe and would like to explore markets as far as North and

South America

Exporters have expressed satisfaction about DE services at around 75% rate for most of the

services

Most important; majority of exporters voiced the needs for buyer information in new markets,

more advocacy support and alerts on rules and regulations among others

1. Strategic Directions Dubai Exports (DE), an agency of Dubai Economic Dept. was established in 2007 with the mandate to

boost exports from Dubai through product and market diversification. DE has set its strategic plan in line

with Dubai Economic Development Dept. corporate strategy, with the objective to ensure alignment

with clients’ needs and to achieve set KPI. In this context DE is guided in its operation by the

framework of its Vision: “To be a world class export development agency through innovation and its

and its Mission: “To empower and diversify Dubai's economic growth by offering pioneering *export

services to businesses”

The main objectives of DE stemming from its mandate include, inter-alia, the following:

• To increase the value of exports facilitated target rough DE assistance.

• To increase the number of companies entering foreign markets via DE assistance.

• To increase the number of exporters entering new foreign markets for the first time.

• To increase the number of companies improving their business performance as a result of

receiving DE assistance.

• To develop and sustain an environment of organizational excellence in its processes and

dealings with all stakeholders

Target Markets and Focus Products


Two important elements of DE strategy are target markets and focus products. Both target markets and

focus products have been identified based on research of trade flow and export capability.

13 country markets plus GCC and EU were identified as target markets worldwide while 10 Focus

group of products were identified and divided in two groups :

Group A are those products/industries in which Dubai has good capability and hence more promotion is

required than capacity building .and Group B are those industries/products that are not well established

and do require more of capacity building initiatives than mere export promotion.

Target services were also set with Dubai capability and experiences in mind and are grouped in two

groups: Dubai generated services like high- end BOP, aviation and media services and Dubai Invented

services like e-government platforms.

International partners and overseas offices

To provide optimum services DE works with both local Government and international sister partners

who are in the same field, DE has forged memoranda of understanding (MOU) with renowned trade

promotion organizations like Matrade, Austrade among others who provide a network of mutual

reciprocal cooperative support to DE.

However DE depends on its overseas offices to provide direct services to its clients in the major markets

by providing on-ground assistance in the most effective way. It has established two offices in Saudi

Arabia (which is also responsible for Egypt) and in India. Both these offices were set up after a careful

study of the needs and manned with local consultants who are well versed in local market conditions,

the business community and government regulations

Target markets


Focus products


International Partners and Overseas offices


2. Service Portfolio DE service portfolio span more than 18 services designed to give high value addition to the exporter and

the buyer as well.


3. Performance Evaluation Macro -Impact on trade flow

Over the years 2008-2011 Dubai Exports focused its major activities of exhibitions ,missions and other

export services on 10 partner countries selected to cover GCC ,Europe, Africa ,Asia and Australia

In August 2012 Dubai Exports carried out a comprehensive study to assess the performance of trade

with these partner countries thereby identifying which markets were mostly impacted by DE activities

The study is based on UAE trade statistics. It is important to draw attention to the fact that In 2011 UAE

exports and re-exports by value was nearly equal to Dubai direct and FZ exports and re-exports,

justifying the use of UAE trade as proxy for Dubai in trade analysis.

Overall the study revealed that exports& re-exports to all partner countries in which DE organized

activities(except Australia) increased at rates between about 3% to 100% p.a. for the period 2008-2011

with KSA, Indonesia and Germany exhibiting the highest average annual growth , indicating the

importance of these partners and the positive effects of DE activities.

0 50 100

India

KSA

Qatar

Brazil

France

Germany

Australia

South…

Spain

INDONE…

89

12

6

2

2

2

1

1

1

0

Billions AED

Total Exports+Re-exports 2011


Trade Balance in 2011

The study revealed that trade with Germany, India, and France sustained the largest negative trade

balances with UAE in 2011 , while the smallest negative trade balances were with Qatar, South Africa

and Saudi Arabia, respectively. An important conclusion of the study, however , is that Qatar is the

only partner, among target partners, with which the trade balance was positive in favour of UAE i.e.

,exports and re-exports to Qatar exceeded imports from Qatar by as high as 3.8 Billion AED in 2011.

Top Exports from UAE to Partners 2011

On dimension of exported products ,the study showed interesting conclusions: that Precious Metals

Plastics, Aluminum ,Iron & Steel & Articles ,Copper & articles and Edible Oils & Fats were the top

exports to the trade partners in order of importance and Plastics and Edible oils were mainly exported

to European partners probably because of the need for high quality food and food plastic packaging ,

while Precious Metals have more global markets and GCC market was particularly the important market

for Iron & Steel and Copper & articles, presumably because of the construction boom witnessed in the

region.

An important Overall conclusion of the report: DE market and product focuses during 2008-2011

sustained development in market and product diversification of Dubai exports& re-exports

-20.0% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 120.0%

KSA

INDONESIA

Germany

Qatar

France

India

Brazil

South Africa

Spain

Australia

100.9%

37.2%

28.5%

26.4%

24.2%

19.9%

14.0%

7.9%

2.8%

-16.4%

Total exports& re-exports growth2008-2010 p.a

Qatar, South Africa and Saudi Arabia

has been the top markets in which

the impact of DE activities on trade

flow was significantly felt, resulting

in reduced negative trade balance in

favor of UAE .Qatar has been the only

country among the trade partners

with whom trade balance with UAE

was positive i.e. exports and re-

exports exceeded imports by as much

as 3.8 Billion AED in 2011


Main Markets

Major Partners markets

Plastics Mainly Europe except GCC, Indonesia and Asia

Precious Metals All ,except Far East Aluminum Mostly Europe ,Indonesia and Far East, except

Africa & Middle East Iron & Steel & Articles GCC, India Except Europe ,Far East , Africa and

Brazil Copper & Articles GCC & India Edible Oils & Fats Europe

Micro level Impact

Success transactions

At the micro level, DE measure the impact of its services on the exporters performance bi-annually

,and utilize the results to assess the direct impact of its activities on export increase based on written

confirmation from the exporters on the transaction achieved through DE assistance, the gathered

information include mainly value ,product and market and which service was the driver of the success.

The transaction report for the first six month revealed that total value of business estimated to be

realized on the basis of repeat order exceeds 4 Billion AED.

0

1

2

3

4

5

6

7

#Partners towhict top exportswent


Overall 68 transactions were concluded during the six month period and those transactions covered

more the 14 countries in addition to GCC and OECD regions , while the largest single transaction was for

plastics and was valued 90 Million AED (estimated to reach 1800 Million AED by repeat orders) . Also it

is found that the main markets for which largest number of transactions was concluded were KSA,

Qatar, and India. By value the largest transactions were for KSA and Morocco at 182 Million AED (85%)

and 12 Million AED (6%) respectively.

By region: Top transaction values were for GCC 85%, Africa (7%), and Asia (1%)

Product-wise, the report showed that about 14 type of transactions were for construction related

products and 9 for food and related products. Activity-wise ,Exhibitions and Exports Assistance

programs were the two main drivers of export success while the majority of the exporters expressed

their satisfaction of the services that DE offer to them and categorically indicated that DE assistance

has actually helped them improve their export performance.

Stakeholders Needs Assessment DE recognizes the importance of the continuous review of its service portfolio to ensure that it is always

fulfilling the needs of its stakeholders and its strategic targets.

DE uses surveys, and face-to-face interviews to assess the needs of the clients and measure their

satisfaction with the services offered.

The recent client Needs Assessment Survey encompassed 200 companies who completed a

questionnaire in addition to 20 companies who attended face-to-face interviews

The survey revealed important feedbacks which are summarized in the following:

In addition to the traditional lucrative market in GCC, exporters are now looking for new

markets mainly in Africa, Asia and Europe and would like to explore markets as far as North and

South America

Costruction

related Product

s61%

Food & Packagi

ng39%

Transactions by product group


Exporters have expressed satisfaction of DE services at around 75% rate for most of the services

The survey indicated that participation in exhibitions is most preferred service for the Food

sector companies and Building and Construction sectors, in addition exporters voiced

preference to specific international exhibitions in Europe and India, as also local exhibitions in

Dubai like Big 5

Exhibitions and buyer lead information are among the top demanded services by food

industries, while construction companies mostly prefer participation in trade missions and

exhibitions. Publications are in demand mostly by the plastic industries while Metal industries

mainly rely on buyer lead information and value added non-financial services like matchmaking

Most important; majority of exporters voiced the needs for buyer information in new markets,

more advocacy support and alerts on rules and regulations among others

0

20

40

60

80

100

120

140

160

180Stakholders Needs Survey

currentExportdestination


Appendix

Top Exports to Partners


Germany

39

Plastics 214,263,090

71

Precious

Metals &

Stones

42,640,000

52 Cotton

35,038,226

88 Aircraft

Spare parts 31,708,701

76 Aluminum

23,194,642

France

15 Edible Oils

Fats 576,456,046

69 Ceramics 75,414,202

76 Aluminum 35,413,296

39 Plastics 33,423,473

71

Precious

Metals &

Stones

27,886,422

Spain

39 Plastics 38,313,674

76 Aluminum 33,905,506

17 Sugar&

Confectionary 27,197,342

15 Edible Oils

Fats 22,555,219

85

Electrical &

Electronic

Equipment

8,448,343

Brazil

89 Ships &

Boats 1,658,506,420

71

Precious

Metals &

Stones

108,129,431

70 Glass &

Glassware 45,456,743

25

Stones,

Plasters &

Cement

41,047,570

39 Plastics 35,285,465

South Africa


71

Precious

Metals &

Stones

161,668,887

39 Plastics

120,497,878

70 Glass &


48 Paper &

Paperboard 15,105,202

69 Ceramics

13,533,905

Saudi Arabia

71

Precious

Metals &

Stones

1,439,938,179

72 Iron & Steel

646,802,320

74 Copper &

Articles 611,294,213

18 Cocoa &

Preparations 494,887,277

04 Dairy

Products 416,457,593

Qatar

25

Stones,

Plasters &

Cement

532,655,103

71

Precious

Metals &

Stones

365,297,572

74 Copper &


73 Articles of

Iron & Steel 95,636,098

85

Stones,

Plasters &

Cement

74,823,331

India

71

Precious

Metals &

Stones

31,633,719,793

72 Iron & Steel 992,454,701

74 Copper &


39 Copper &


76 Aluminum 469,913,370

Indonesia


76 Aluminum

69,007,824

72 Iron & Steel

55,888,251

47

Pulp of

wood and

waste

42,526,756

27 Mineral

Fuels 17,013,026

08 Edible Fruits

& Nuts 16,153,254

Australia

57

Carpets &

Floor

Covering

58,684,302

70 Glass &


84 Machinery

37,331,626

39 Plastics

31,673,212

73 Articles of

Iron & Steel 30,090,508

Source: UAE Trade data

Note: Note: It is estimated that most of UAE trade pass through Dubai, statistics show that direct and FZ

exports & re-exports from Dubai in 2011 almost equal to exports and re-exports of UAE in the same

year.

Appendix

Pattern of UAE Trade with Partner Countries 2008-2011

Imports

Non-oil exports

Re-exports

Kg AED Kg AED Kg AED

AUSTRALIA 2008 2,203,026,355 12,241,576,397 86,521,246 299,791,474 20,406,786 241,983,997

AUSTRALIA 2009 2,564,504,022 6,365,417,952 63,399,343 228,245,073 12,376,604 275,120,965


AUSTRALIA 2010 3,590,110,097 7,499,975,704 65,838,440 275,344,198 12,529,993 279,670,886

AUSTRALIA 2011 4,071,393,270 8,956,786,654 61,467,431 342,911,488 66,458,800 525,059,591

BRAZIL 2007 1,946,413,997 4,736,252,479 4,486,180 31,224,490 3,750,910 111,969,806

BRAZIL 2008 541,785,077 4,295,564,738 5,795,099 44,193,788 4,067,266 61,085,182

BRAZIL 2009 938,058,576 3,750,166,787 7,009,732 83,217,994 7,798,518 173,502,280

BRAZIL 2010 2,041,723,467 4,471,338,739 52,804,671 2,912,212,154 13,951,441 167,094,593

BRAZIL 2011 2,679,003,977 5,773,190,961 103,647,669 1,903,909,733 9,813,440 178,733,257

FRANCE 2008 628,544,608 14,072,264,965 22,450,714 118,590,106 17,310,043 735,281,374

FRANCE 2009 531,628,828 14,027,148,164 34,726,419 184,415,947 9,144,991 698,558,680

FRANCE 2010 499,791,186 12,779,252,928 46,890,503 230,306,128 13,056,399 1,282,052,308

FRANCE 2011 481,873,700 15,982,918,828 157,915,551 824,104,534 7,478,728 959,248,323

GERMANY 2007 859,233,588 26,398,823,560 48,285,846 195,574,285 14,069,061 728,423,917

GERMANY 2008 1,318,623,488 37,098,186,209 49,815,684 265,653,514 28,519,594 1,605,357,203

GERMANY 2009 1,131,823,179 29,997,984,892 85,152,023 334,640,851 11,760,439 698,506,804

GERMANY 2010 1,134,023,083 29,679,480,748 51,721,372 393,538,211 11,156,296 775,285,349

GERMANY 2011 859,172,902 30,656,091,936 74,160,888 519,421,231 9,759,123 1,012,654,122

INDIA 2008 6,859,092,842 61,968,590,564 1,717,563,250 ############ 567,828,847 ###########

INDIA 2009 4,572,037,921 61,564,824,441 1,405,531,673 ############ 451,272,534 ###########

INDIA 2010 3,742,883,629 83,187,391,613 1,654,509,333 ############ 456,058,367 ###########

INDIA 2011 4,032,082,968 105,132,176,612 2,284,578,155 ############ 377,188,022 ###########

INDONESIA 2007 1,207,024,436 5,699,626,878 126,025,444 191,394,030 7,610,716 61,894,050

INDONESIA 2008 818,039,479 6,254,510,509 109,427,504 177,586,196 59,771,854 466,274,742

INDONESIA 2009 820,055,915 4,914,241,216 75,917,196 106,084,814 9,525,621 64,409,489

INDONESIA 2010 465,160,117 4,579,908,345 128,929,677 217,310,628 8,089,766 82,904,032

INDONESIA 2011 518,349,873 5,190,481,067 144,703,780 237,315,280 8,679,128 124,499,896

QATAR 2007 487,011,089 1,433,780,713 17,997,251,433 2,525,447,053 312,535,794 3,104,835,584

QATAR 2008 356,914,735 1,700,578,437 20,427,964,713 7,718,539,067 357,123,417 3,481,782,464


QATAR 2009 692,365,690 1,614,858,003 11,491,916,174 4,897,410,577 239,859,221 4,934,737,381

QATAR 2010 767,025,290 2,088,978,682 8,584,859,359 1,817,917,385 245,416,270 4,704,835,333

QATAR 2011 578,718,958 1,946,610,604 10,159,230,884 1,870,594,632 312,448,533 3,877,616,631

SAUDI

ARABIA 2007 3,572,032,555 12,880,560,473 1,873,820,111 1,913,752,577 332,438,358 4,167,957,885

SAUDI

ARABIA 2008 3,687,196,511 16,144,559,097 309,446,659 2,170,262,789 335,125,128 3,271,958,271

SAUDI

ARABIA 2009 3,182,797,525 12,179,265,734 241,013,999 3,006,950,384 355,225,910 6,265,938,216

SAUDI

ARABIA 2010 2,942,257,034 11,969,870,582 402,970,820 3,743,524,689 389,167,543 5,414,938,960

SAUDI

ARABIA 2011 3,544,322,867 15,048,260,659 641,349,029 5,660,426,785 397,444,387 5,984,821,138

SOUTH

AFRICA 2007 980,403,551 4,835,204,589 89,632,766 263,428,187 13,247,098 355,830,205

SOUTH

AFRICA 2008 964,502,044 12,531,472,879 74,196,035 395,742,550 14,151,988 1,012,585,749

SOUTH

AFRICA 2009 836,495,337 2,477,777,240 53,141,975 368,125,287 21,313,590 380,453,722

SOUTH

AFRICA 2010 1,394,482,973 3,304,667,348 83,937,260 339,581,723 15,856,391 283,271,393

SOUTH

AFRICA 2011 989,584,430 3,519,431,031 77,934,499 447,089,052 17,956,192 366,183,361

SPAIN 2007 724,561,365 4,100,649,096 17,634,927 83,594,175 6,479,350 175,913,422

SPAIN 2008 806,170,959 4,962,215,444 14,993,557 70,625,033 11,934,655 258,415,204

SPAIN 2009 810,423,087 3,895,724,532 22,023,917 112,959,642 3,549,601 100,688,929

SPAIN 2010 779,020,128 3,875,008,562 18,438,041 103,541,118 4,692,774 166,871,184

SPAIN 2011 1,100,236,075 5,194,871,396 29,459,413 155,928,629 9,211,450 395,787,411

Source: UAE Trade data

Note: It is estimated that most of UAE trade pass through Dubai, statistics show that direct and FZ

exports & re-exports from Dubai in 2011 almost equal to exports and re-exports of UAE in the same

year.



Documents

The Impact of Dubai Exports Activities on Export Performance … · 2015-08-18 · The Impact of Dubai Exports Activities on Export Performance (August 2012) Trade Balance in 2011