Trade and logistics

Epicentre of global trade 

Building on its history as a trade hub, Dubai is ideally situated at the intersection of established and emerging commercial routes, bridging East and West. This strategic nerve centre enables the seamless flow of goods, business and investments across the Middle East, Europe, Africa and Asia. 

Dubai’s well-established logistics and supply chain ecosystem, encompassing some of the world’s best ports, airports and a hyper-modern roads and transportation network, makes unparalleled connectivity possible. Dubai’s world-class infrastructure facilitates efficiency and reliability in trade operations, making it the preferred destination for businesses seeking to diversify and expand into new, high-potential geographies. 

D33: Building future trade horizons

Retail and wholesale trade account for the majority of Dubai’s annual GDP. Trade (wholesale and retail) is the most significant contributor to Dubai’s GDP yearly. The sector will also be instrumental in achieving the key goals outlined in the D33 economic agenda. These include doubling the foreign trade volume and positioning Dubai as one of the world’s top five logistics hubs through connectivity, services and operations. 

Key pillars include expanding Dubai’s trade horizons by establishing new economic corridors and signing trade agreements. The strategy aims to transform global trade management by implementing integrated, purpose-built, multimodal supply chain solutions spanning sea, air and land routes. There’s also a focus on boosting government expenditure and investments in infrastructure to create a robust, efficient logistical ecosystem.

Trailblazer in logistics 

Exporting from Dubai affords access to billions of consumers spanning the broader MEASA region. This is enabled by the city’s highly efficient logistics ecosystem, which contributes roughly 8% to the UAE’s overall GDP. Dubai’s logistics prowess has also aided the UAE to be recognised as one of the world’s top 12 countries on the World Bank Logistics Performance Index.

Thanks to substantial infrastructural investments, Dubai’s logistics sector has become a significant trade and re-export base for commodities on the Europe-Asia route. The city’s world-renowned maritime and logistics capabilities, robust legal and legislative framework, and conducive business environment have consistently ranked it as one of the top 5 shipping hubs on the International Shipping Centre Development Index.

Diversified trade footprint 

Dubai is one of the most important regional import and re-export hubs, actively developing innovative solutions to boost multiple industries, such as automotive, energy and more. 

Growth in motor vehicle transportation has been spearheaded by JAFZA’s strong connectivity and cohesive infrastructure, which attract industry giants like Ford, General Motors, Honda, Mitsubishi and Volkswagen. DP World’s used car market, The Dubai Auto Zone (DAZ) also provides a unique platform that encourages further growth for the auto industry. 

The global energy industry is also turning towards Dubai, encouraged by the government’s strong focus on renewables and investments in major projects such as the US$13.6 billion (AED50 billion) Sheikh Mohammed Bin Rashid Al Maktoum Solar Park, the world’s largest single-site solar park. This steadfast focus on enabling the energy sector is supported by major homegrown players like Emirates National Oil Company (ENOC), as well as global giants like BP, China Petroleum Engineering and Construction Company (CPECC), Halliburton and many more across upstream, midstream and downstream. 

Enhancing security and efficiency

Trade in Dubai is streamlined through several initiatives that prioritise efficiency and security. A collaboration between Dubai Customs and the Dubai Digital Authority yielded the Early Cargo Targeting System, designed to detect and combat illegal trafficking and commercial activity. Its focus is protecting the integrity and safety of the city’s operations and cultivating a secure business environment in Dubai.

International trade and financial nexus

The UAE has bolstered its international trade relations through strategic agreements with key economies worldwide. In December 2022, the UAE expanded its trade horizons by inaugurating new offices in Cairo, Tel Aviv and Istanbul, signalling its commitment to fostering trade relationships and business opportunities between the two regions. 

Additionally, as a member of BRICS, the UAE stands poised to enhance bilateral trade relations with other BRICS nations, further amplifying its global trade footprint and economic influence.

Comprehensive Economic Partnership Agreements programme 

Dubai's CEPA programme is integral to the UAE's 'Projects of the 50' initiative, aimed at enhancing its status as a top global trade, business, and investment hub. Through CEPA, the UAE is fostering stronger trade relations with major economies, such as India, Cambodia and Indonesia, further solidifying its role as a key player in international commerce and logistics.

Having already signed ten CEPA’s, the UAE is poised to attract significant foreign direct investment (FDI), targeting a staggering US$150 billion by 2031. These agreements are projected to drive non-oil bilateral trade volumes beyond US$170 billion (AED625.6 billion) within the next five years, representing a remarkable 46% increase from 2022. Against this thriving trade landscape, the UAE's non-oil foreign trade reached a record high of US$952.93 billion (AED3.5 trillion) in 2023.