Foreign Trade Series

New Export Markets for Dubai

Data Management & Business Research

2007

Published by:
DCCI Data Management & Business Research Department
P.O. Box 1457 Tel: + 971 4 2028410
Fax: + 971 4 2028478
Email: dm&r@dcci.ae
Website: www.dcci.ae
Dubai, United Arab Emirates

All rights are reserved. No part of this publication may be reproduced, stored in
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ISBN

Table of Contents
Executive Summary (Arabic) ......................................................................................................... 3
Executive Summary (English) ........................................................................................................ 5
1. Background ................................................................................................................................. 7
2. Objective ...................................................................................................................................... 10
3. Data and Methodology ............................................................................................................... 11
4. Dubai Exports and Re-exports: An Overview ......................................................................... 13
5. New Markets ............................................................................................................................... 17
5.1. Exports ................................................................................................................................. 17
5.1.1. Aluminum & articles thereof ................................................................................. 17
5.1.2. Sugars & sugar confectionery .............................................................................. 18
5.1.3. Mineral fuels, oils, waxes & bituminous substances ............................................. 19
5.1.4. Plastics & articles thereof ..................................................................................... 20
5.1.5. Pearls, precious metals, stones & articles thereof ................................................ 21
5.1.6. Iron & steel ............................................................................................................ 23
5.1.7. Articles of iron or steel ........................................................................................... 24
5.1.8. Ceramic products ................................................................................................... 25
5.1.9. Articles of apparel, not knitted or crocheted ......................................................... 26
5.1.10. Glass & glassware ................................................................................................. 27
5.2. Re-exports ........................................................................................................................... 28
5.2.1. Pearls, precious metals, stones & articles thereof ................................................ 28
5.2.2. Electrical machinery, sound recorders & parts .................................................... 29
5.2.3. Vehicles other than railway or tramway; parts ..................................................... 30
5.2.4. Nuclear reactors, boilers, machinery & parts thereof ........................................... 30
5.2.5. Man-made filaments .............................................................................................. 30
5.2.6. Articles of apparel, not knitted or crocheted ......................................................... 31
5.2.7. Rubber & articles thereof ...................................................................................... 31
5.2.8. Furniture, bedding, mattresses, lamps & fittings, signs ........................................ 32
5.2.9. Articles of iron or steel .......................................................................................... 33
5.2.10. Plastics & articles thereof ................................................................................... 33
6. Summary and Conclusions.......................................................................................................... 35
7. References .................................................................................................................................... 38

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Executive Summary
During recent years, Dubai exports and re-exports have shown to be modest in terms of
absolute values and they grow slowly compared to imports. In addition, exports and reexports exhibit high dependency (or concentration) ratios for both trading partners and
product categories. Consequently, the need to enhance the performance of exports and reexports became necessary. Therefore, this report identifies potential new markets for Dubai
top 10 export and re-exports product categories.
For Dubai exports, several individual European countries are identified as major potential
new markets. Moreover, the Western Hemisphere (especially Mexico and Brazil) is another
potential new market for Dubai exports of many product categories. From the Middle East,
Jordan and Syria appear to be promising candidates. In addition, some industrial countries
such as Japan, Canada, and New Zealand, together with other Asian countries have also been
identified as potential new export markets. However, although African countries are among
the candidate countries for new export markets, their capacity absorption potential is much
lower than the rest of candidate countries making them relatively less attractive. However,
for certain product categories the African countries seem attractive markets with considerable
total potential market size once they are treated as one bloc.
Unlike exports, identified potential new markets for re-exports are limited due to the fact that
Dubai is known as re-export hub and many of its product categories are widely re-exported to
numerous countries. Nevertheless, the European countries seem to be once again potential
new candidates for Dubai re-exports, especially Ukraine, Ireland, Portugal, Luxembourg,
Iceland, Denmark, Hungary, Austria, Croatia, Slovak Republic, and Slovenia. Furthermore,
the Western Hemisphere is also a potential new re-export market. Major countries are
Mexico, Argentina, Chile, Peru, and Jamaica. Lastly, China is the main new candidate
market from Asia.
Finally, it is worth mentioning that the new export/re-export markets identified in this report
are general guidelines to potential opportunities. However, a more detailed research must be

conducted for each of the proposed markets separately in order to identify whether it is a real
potential new market or not. Matters to be addressed include finding out reasons for not
exporting to this destination country, rules of origins, trade and non-trade barriers, etc.
Backed up with the government support, exporters must also further explore these markets in
order to be able to draw an export plan which helps in penetrating these markets.

1. Background

It is well-known that Dubai's small and open economy has been driven mainly by
external trade. During latest years, the trade and repairing services sector represented the largest
share of Dubais economy which underlines the Emirates position as a trade hub in the region.
In nominal terms, it represented about 23% of Dubai total non-oil GDP in 2005 with a growth of
45% compared to previous year. Furthermore, this sector represented around 60% of the UAE
total trade and repairing services sector in 2005. More important, the major component of
Dubais trade and services sector which is foreign trade has reached AED 281 billion in 2005,
showing a growth of 30% over the previous year. In 2005, remarkable growth was recorded in
each of the foreign trade components: imports (27.8%), exports (16.4%), and re-exports (38.2%).
In line with the earlier arguments, Dubai played two major roles: first, as a direct exporter; and
second, an intermediary re-exporter.

On the one hand, Dubais role as an exporter has been modest in terms of both total trade
value and diversification of exported products, given the limited capacity and natural resources
of the Emirate. A reduced group of product categories has been leading its exports to other
countries worldwide (these mainly include aluminum and articles thereof; sugars and sugar
confectionery; mineral fuels, oils, waxes & bituminous substances; plastics & articles thereof;
pearls, precious metals, stones & articles thereof; iron & steel; and ceramic products). These
facts urge the need to boost Dubai exports and find new destinations for them. For more
information about how to identify new export markets and foster foreign trade, see ITC (2000
and 2001).

On the other hand, and given re-exports considerable share in total foreign trade, Dubai's
role as an intermediary re-exporter has direct positive effects on its economy as the economies of
producing countries expand and the demands of destination countries increase. The rapid growth
in the economies of the producing countries, with which Dubai usually trades, has led to
remarkable growth in its re-exports. more specifically, in a five-year period Dubai witnessed
significant growth in re-exports as its total value increased from AED 22.5 billion in 2001 to
AED 78.8 billion in 2005, with an annual average increase of 28.5%. Statistics from Dubai

Department of Ports and Customs shows that the Emirate re-exported goods to more than 195
destinations. All these facts reflect the importance and significance of re-exports to the trading
movement in Dubai.

Furthermore, although Dubai is not yet an industrial producer, this fact does not prevent it
from playing a significant role in the global trade. More concretely, Dubai attempts to act as an
intermediary between producing countries with comparative or absolute advantages and
countries in need for their products. The existence of these intermediary services results in
efficiency gains to the parties involved. By addressing the question of whether to use an
intermediary versus direct trade with origin country and then decide on which supplier or trader
to deal with, Feenstra et al (2004) show that there will be savings in transaction costs that would
otherwise arise from dealing directly without having well-informed intermediaries. These gains
will be passed to consumers worldwide in the form of lower prices for goods. Furthermore, some
recent theoretical literature emphasizes the importance of intermediaries in reducing
informational barriers to international trade (e.g., Wan and Weisman, 1999; Casella and Rauch,
2002; Rauch and Casella, 2003; Rauch and Trindade, 2003; and Rauch and Watson, 2004). This
is confirmed by empirical studies of several countries such as Gould (1994) for USA, Head and
Ries (1998) for CANADA, Girma and Yu (2000) for UK, Rauch and Trindade (2002) for
CHINA, and Feenstra et al (2004) for Hong Kong, among others. These papers find that bilateral
trade volumes are higher between countries that share large immigration flows and/or ethnic
populations. Presumably, these networks serve as conduits of information about trading
opportunities. In other words, immigrants from the other countries bring with them new
information that can help substantially reduce the transaction cost of trade between their home
countries and the host nation.

From the discussion it has been made clear how countries do usually benefit from
purchasing goods through having access to intermediary services instead of importing directly
from the origin country. Although an intermediary (such as Dubai) charges markups for its
services, there are welfare gains to imported countries using these services as the intermediary
supply them with information on markets and producers that is unavailable to them.

The present report attempts to identify new export/re-export markets for Dubai in order to
help maintain as well as further enhance its foreign trade exceptional performance. This would
help Dubai traders to further open new exporting/re-exporting channels for their products
worldwide.

2. Objective

This report aims mainly at identifying new markets for Dubais exports and re-exports.
The report is outlined as follows:

1. An overview of Dubai exports and re-exports and the importance of identifying new
destination markets.
2. Who are Dubais actual major trading partners for exports and re-exports?
3. What are Dubais major exported/re-exported product categories?
4. Which countries/regions could be considered as new potential export & re-export
markets for Dubai?

10

3. Data and Methodology

Foreign trade data is extracted from two main resources: local (the UAE ministry of
economy) and international (COMTRADE database) for the year 2005. However, in some cases
data from years 2004 and 2003 will be used in case data of 2005 is not available. Given that
Dubai is known as a re-export hub, then in our analysis we will distinguish between exports and
re-exports (non-oil). This would help identifying potential markets for both exports and reexports.

The methodology applied to identify new export/re-export markets is mainly trade flow
analysis and it includes three steps. The first step is to identify major product categories being
exported/re-exported by Dubai to the world (2-digits level will be used). Dubai major exports/reexports product categories are defined as top 10 product categories which represent at least 1%
of total Dubai exports/re-exports. The second step is to find out countries that already appear in
Dubai trading partners list but to which Dubais exports/re-exports of some of the top 10
product categories equal zero (i.e. no bilateral trade at all). These countries are supposed to be
considered as new destination markets for Dubai exports/re-exports. The third step is to identify
the world imports of these countries from the product categories identified in step two. If these
world imports result to be relatively high, in that case this country could be considered as a
potential new market for Dubais products given that it is already exporting/re-exporting them to
countries other than the one identified as a new market. The term relatively high world imports
varies for each country based on its total imports level and Dubais total exports/re-exports of the
concerned product category.

Identified export/re-export markets in this report are divided into three categories based
on their relative importance: first, second, and third rank markets. First-rank markets are those to
which Dubai is not exporting/re-exporting any value of the concerned product category at all (i.e.
trade value equals zero). These markets are considered potential candidates for new export/reexport destinations. Second-rank markets represent markets where Dubai is exporting/reexporting a very modest level of concerned product categories. Modest level means less than 1%
of Dubai total exports/re-exports of the concerned product category but higher than zero. Here,

11

there is a potential to increase the level of bilateral trade. Third-rank markets are those to which
Dubai is already exporting/re-exporting the concerned product category and foreign trade value
exceeds 1% of its total exports/re-exports of that product category. These are seen as major
trading partners. Due to space limitation we will only list in this section the first-rank markets as
they represent new export/re-export markets.1 As we will see later, the sizes of new exports
markets are calculated based on their import value of the concerned product category (referred to
later on as potential market size). Of course, one does not expect Dubai to fill completely this
gap, but rather it could acquire a specific share of this market based on several determinants.2

Note that for some product categories whether exports of re-exports, there might be no
identified new markets at all or they might be few. The reasoning behind that is the fact that
Dubai in 2005 has exported/re-exported the concerned product category to almost all its trading
partners. Nevertheless, many of these exports might be insignificant in terms of trade value.
Therefore, it would be interesting to analyze the trade flow with these countries to identify
potential increase in re-exports value. This process is not done in this report as it focuses only on
countries to which Dubais value of exports/re-exports is zero. Future research is intended to take
this issue into consideration. Furthermore, countries identified as new export/re-export markets
but whose total imports of the focused product category (i.e. market size) are not available due to
data limitations, will not be discussed or commenting on throughout the report.

Finally, the countries covered by the analysis to identify new markets are those appearing
in Dubais foreign trade list (i.e. around 184 countries).

Data on second- and third-rank markets are available from authors upon request.
Determinants refer to, for instance and without limitation, Dubai production capacity, transaction costs, and any
other foreign trade determinants. These are not explored in this report because they are not our focus.

12

4. Dubai Exports and Re-exports: An Overview

In the last 20 years, Dubais foreign trade has been growing remarkably. As shown in
Figure 4.1., Dubais total foreign trade almost doubled its value during the first decade (i.e.
1985-1995) while more than tripled it in the second decade (i.e. 1995-2005). Interestingly,
imports during that period were the major driver of the witnessed growth. In 2005, total foreign
trade stood at AED 280 billion, of which imports, exports, and re-exports represent (68%), (4%),
and (28%) respectively. Due to the purpose of this report, the next sections will elaborate on
exports and re-exports only.

Figure 4.1. Dubai Total Foreign Trade (1985-2005)

300
250

Billions AED

200
Export

150

Re-export

100

Total Trade

50

20
05

20
03

20
01

19
99

19
97

19
95

19
93

19
91

19
89

19
87

19
85

Source: UAE Ministry of Economy

From AED 4.6 billion in 1995, exports jumped to AED 11.2 billion in 2005, recording a
growth of around 143%. Note that absolute values of total exports are still modest compared to
total foreign trade. Export share in total foreign trade were low and unstable between 1985 and
2005. It increased from 5% in 1985 to 6% in 1995 while fell to 4% in 2005.

13

As shown in Table 4.1, top 10 export destination countries represent 51% of Dubai total
exports. This fact reveals that half Dubais exports are dependent on only few trading partners,
which makes it very sensitive to alterations that might occur in the demand of any of these
trading partners.
Table 4.1: Dubai Top 10 Export Trading Partners (2005)
Rank

Country

% in total
Exports

Rank

Country

% in total
Exports

INDIA*

8%

IRAQ*

4%

KUWAIT

7%

SAUDI ARABIA*

4%

PAKISTAN*

7%

TAIWAN

3%

USA

7%

YEMEN

3%

IRAN*

5%

10

BAHRAIN

3%

Top 10 % of Total Exports

51%

Total Exports (Billions AED)

11.2

* Denotes countries that are listed as Dubai top trading partners in both exports and re-exports.
Source: UAE Ministry of Economy

Furthermore, high dependency ratio was not only observed for trading partners but also
for product categories being exported to these countries. Dubai top 10 exported product
categories based on 2-digits HS Code system represented 63% of total exports (see Table 4.2).
More interestingly, aluminum and articles thereof (HS Code 76) represented slightly more than
one fifth of total exports in 2005.

While exports required 10 years to double its value as shown previously, re-exports has
increased with about 5 times during the same period, from AED 13 billion in 1995 to AED 78.8
billion in 2005. Re-exports share in total foreign trade was 17% in 1985 which increased slightly
to 18% in 1995 and jumped later on to 24% in 2005. Figure 4.1 shows that considerable increase
in re-exports value was recorded in 2002 and which continued till 2005.

14

Table 4.2: Dubai Top 10 Exported Product Categories in 2005 (2-digits)

HS Code

% in UAE

Product Category

Export

76

ALUMINUM AND ARTICLES THEREOF

22%

17

SUGARS AND SUGAR CONFECTIONERY

10%

27

MINERAL FUELS, OILS, WAXES AND BITUMINOUS SUBSTANCES

6%

39

PLASTICS AND ARTICLES THEREOF

6%

71

PEARLS, PRECIOUS METALS, STONES & ARTICLES THEREOF

5%

72

IRON AND STEEL

3%

69

CERAMIC PRODUCTS

3%

62

ARTICLES OF APPAREL, NOT KNITTED OR CROCHETED

3%

70

GLASS AND GLASSWARE

3%

73

ARTICLES OF IRON OR STEEL

3%

Top 10 % of Total exports

63%

Total Exports (Billions AED)

11.2

Source: UAE Ministry of Economy

Nonetheless, and similar to exports, Dubai re-exports showed high dependency ratio on
top 10 trading partner as they absorbed 65% of Dubai total re-exports in 2005 (see Table 4.3).
Here, the ratio of top 3 re-export partners (i.e. 45%) is much higher than that of exports (i.e.
22%), which reflects high vulnerability to changes in re-export demand by India, Iran, and Iraq.
Table 4.3: Dubai Top 10 Re-export Trading Partners (2005)
Rank

Country

% in UAE
Re-exports

Rank

Country

% in UAE
Re-exports

INDIA*

23%

PAKISTAN*

3%

IRAN*

15%

GERMANY

2%

IRAQ*

7%

LIBYA

2%

SWITZERLAND

5%

SAUDI ARABIA*

2%

NETHERLANDS

4%

10

BELGIUM

2%

Top 10 % of Total Re-exports

65%

Total Re-exports (Billions AED)

78.8

* Denotes countries that are listed as Dubai top trading partners in both exports and re-exports.
Source: UAE Ministry of Economy

15

Note that there are five countries listed amongst Dubais exports and re-exports top 10
partners: India, Iran, Iraq, Pakistan, and Saudi Arabia. Foreign trade figures show that these
countries represent 28% and 50% of Dubai total exports and re-exports respectively, which could
be interpreted as high dependency ratio on these countries.

With regard to re-exported product categories, the top 10 list in 2005 represented 80% of
total re-exports (see Table 4.4). Pearls, precious metals, stones & articles thereof (HS Code 71)
represent 34% of total re-exports followed by electrical machinery, sound recorders & parts (HS
Code 85).
Table 4.4: Dubai Top 10 Re-exported Product Categories in 2005 (2-digits)
HS Code

Product Category

% in UAE
Re-export

71*

PEARLS, PRECIOUS METALS, STONES & ARTICLES THEREOF

34%

85

ELECTRICAL MACHINERY, SOUND RECORDERS AND PARTS

18%

87

VEHICLES OTHER THAN RAILWAY OR TRAMWAY; PARTS

9%

84

NUCLEAR REACTORS, BOILERS, MACHINERY & PARTS THEREOF

9%

54

MAN-MADE FILAMENTS

3%

62*

ARTICLES OF APPAREL, NOT KNITTED OR CROCHETED

2%

40

RUBBER AND ARTICLES THEREOF

2%

94

FURNITURE, BEDDING, MATTRESSES, LAMPS & FITTINGS, SIGNS

1%

73*

ARTICLES OF IRON OR STEEL

1%

39*

PLASTICS AND ARTICLES THEREOF

1%

Top 10 % of Total re-exports

80%

Total Re-exports (Billions AED)

78.8

* Denotes top re-export product categories that are listed also as top exports as indicated in Table 4.2.
Source: UAE Ministry of Economy

There are four product categories which were identified as Dubai major exports and reexports at the same time. These are pearls, precious metals, stones & articles thereof (HS Code
71), articles of apparel, not knitted or crocheted (HS Code 62), articles of iron or steel (HS Code
73), and plastics & articles thereof (HS Code 39). Therefore, both Dubai exports and re-exports
exhibit high dependency ratios not only for trading partners but also for traded product
categories.

16

5. New Markets
From the previous section one may infer that Dubai exports and re-exports are in the first
place modest in absolute values and grow slowly compared to imports; then, exhibit high
dependency ratios for both trading partners and product categories. Therefore, the need to
enhance Dubai exports and re-exports performance is required. Based on the selected
methodology, new export and re-export market destinations for Dubai are identified. Product
categories for which new export and re-export markets will be identified are those in Tables 4.2
and 4.4 listed in Section 4 earlier.
5.1. Exports

As identified in Section 4 (Table 4.2), product categories for which we will identify new
export markets are presented below one by one.

5.1.1. Aluminum and articles thereof (HS Code 76)

New export markets for aluminum and articles thereof are spread over several regions
worldwide as shown in Table 5.1.1. Europe is the major identified region for Dubais exports of
aluminum and articles thereof with potential market size of $ 7,984 million in 2005. The major
four European industrial countries to which Dubai is not exporting any of this product category
represent an export market with potential market size of $ 4,238 million. Austria is on the top of
the list followed by Sweden and Denmark, while Finland came last with considerable difference.

Many other European countries represent new export market for Dubai with potential
market size of $ 3,656 million based on 2005 data. As shown in the table 5.1.1 below, Czech
Republic is on top of these countries as its imports of aluminum and articles thereof stood at $
1,200 million in 2005. Furthermore, three countries in the Western Hemisphere are amongst new
export markets as they import around $ 366 million of aluminum and articles thereof. Although
with smaller proportion, Oman and Jordan from the Middle East could be considered as potential
new export markets.

17

Table 5.1.1: New Export Markets for Aluminum and articles thereof (HS Code 76)*
Developing Countries
Industrial
Countries
Africa
Asia
Europe
Middle East
Austria (1,900)
Finland (407)
Denmark (931)
Sweden (1,000)

Comoros
Ivory Coast
Chad
Cameroon
Mali (5)**
Malawi (2)
Rwanda (2)***
Sierra Leone

Nepal (16)***
Vietnam

Czech Rep.(1,200)
Armenia (9)
Estonia (102)
Macedonia
Kazakhstan (121)
Croatia (303)
Hungary (980)
Romania (341)
Slovenia (600)

Oman (109)
Jordan (127)

Western
Hemisphere
Colombia (217)
Argentina (124)
Jamaica (25)**

* Figures between parentheses are countrys total imports of (Aluminum and articles thereof) from the whole world
in US $ Million. Data are of year 2005 unless otherwise stated.
** Data of 2004.
*** Data of 2003.
Source: UAE Ministry of Economy & COMTRRADE Database

Lastly, despite the fact that several African and Asian countries are identified as potential
new markets, their limited import levels of aluminum and articles thereof make them less
attractive destinations than countries presented above.

5.1.2. Sugars and sugar confectionery (HS Code 17)

As shown in Table 5.1.2, Europe is identified as new potential market for Dubais exports
of sugars and sugar confectionery. Its potential market size is estimated at $ 4,398 million of
which industrial countries represent 86.5%. Belgium and France are the major new export
markets followed by the rest of European countries.

Other industrial countries such as Japan and New Zealand are also considered as new
export markets as their potential market size is $ 597 and 114 million, respectively. In addition,
countries from Africa and Asia are also identified as new export markets specially Algeria,
Tunisia, Malaysia, Hong Kong, and Bangladesh.

18

Table 5.1.2: New Export Markets for Sugars and sugar confectionery (HS Code 17)*
Developing Countries
Industrial
Countries
Africa
Asia
Europe
Middle East

Western
Hemisphere

Oman (32)
Argentina (22)
Kazakhstan
Bangladesh
Belgium (1,360) Ethiopia (6)***
Brazil (27)
(231)
Algeria (269)** (184)**
Japan (597)
Chile (108)
Croatia (102)
Hong Kong
Gambia (16)
Switzerland
Colombia (42)
Hungary (96)
(219)
Tunisia (101)
(200)
Ecuador (39)
Poland (163)
Malaysia (348)
Mozambique
New Zealand
Mexico (252)
Philippines (67)
(12)
(114)
S. Korea
Angola
Austria (393)
Thailand (40)
Congo
Denmark (217)
Vietnam
Botswana
Finland (134)
(34)***
France (866)
Malawi (6)
Greece (140)
Ireland (241)
Portugal (255)
* Figures between parentheses are countrys total imports of (Sugars and sugar confectionery) from the whole
world in US $ Million. Data are of year 2005 unless otherwise stated.
** Data of 2004.
*** Data of 2003.
Source: UAE Ministry of Economy & COMTRRADE Database

As regards the Western Hemisphere, a new export market with potential market size of $
490 million is identified with Mexico and Chile topping the listed countries. Only Oman from
the Middle East was presented as new export market but with limited potential market size.

5.1.3. Mineral fuels, oils, waxes and bituminous substances (HS Code 27)

For exports of mineral fuels, oils, waxes and bituminous substances, Europe is the major
market destination identified with potential market size of around $ 235 billion. France, Italy and
Belgium are topping the list of proposed countries as they represent almost 70% of the total.
Canada is also among the industrial countries identified as new export market with potential
market size of $ 28,925 million.

From the rest of world, only three countries from three different regions were identified
as new export markets with considerable potential market size. These are Czech Republic,
Jordan and Mexico. Africa showed no new export markets at all for the concerned product
category.

19

Table 5.1.3: New Export Markets for Mineral fuels, oils, waxes & bituminous substances (HS Code 27)*
Developing Countries
Industrial
Western
Countries
Africa
Asia
Europe
Middle East
Hemisphere
Jordan (2,415)
Mexico (12,168)
Armenia (261)
S. Korea
Belgium
Estonia (914)
Czech Rep.
(39,793)
Latvia (1,334)
(7,079)
Canada (28,925)
Poland (11,618)
France (63,784)
Austria (14,488)
Denmark
(5,014)
Ireland (4,842)
Italy (61,052)
Norway (2,330)
Portugal (8,999)
Sweden
(13,036)
Switzerland
(7,300)
* Figures between parentheses are countrys total imports of (Mineral fuels, oils, waxes and bituminous substances)
from the whole world in US $ Million. Data are of year 2005.
Source: UAE Ministry of Economy & COMTRRADE Database

5.1.4. Plastics and articles thereof (HS Code 39)

Europe market seems a promising new export destination for Dubais exports of plastics and
articles thereof (see Table 5.1.4). Slovak Republic has the highest import share followed by
Slovenia, Lithuania, and Luxemburg. Total potential market size is estimated at $ 4,625 million.
Table 5.1.4: New Export Markets for Plastics and articles thereof (HS Code 39)*
Developing Countries
Industrial
Countries
Africa
Asia
Europe
Middle East
Luxembourg
(717)

Chad
Namibia
(32)***
Swaziland

Cambodia
(36)**

Latvia (348)
Lithuania (719)
Estonia (409)
Slovak Rep.
(1,461)
Slovenia (971)

Western
Hemisphere
Guatemala (591)
Chile (1,192)
Argentina
(1,496)
Dominican Rep.
Venezuela (650)

* Figures between parentheses are countrys total imports of (Plastics and articles thereof) from the whole world in
US $ Million. Data are of year 2005 unless otherwise stated.
** Data of 2004.
*** Data of 2003.
Source: UAE Ministry of Economy & COMTRRADE Database

20

The Western Hemisphere markets could also be looked at as a potential export

destination. Their potential market size was about $ 3,929 million in 2005. Argentina and Chile
are major importing countries followed by Venezuela and Guatemala.

Lastly, although some countries in Africa and Asia were identified as potential new
export markets, their limited market size is made them less attractive.

5.1.5. Pearls, precious metals, stones & articles thereof (HS Code 71)

As Table 5.1.5 shows, several new markets for Dubais exports of pearls, precious
metals, stones & articles thereof are identified worldwide although with different potential
absorption capacities. Europe is in the top of these new markets with total potential market size
of $ 2,559 million. Main new export destinations comprise Austria, Ireland, Portugal, Armenia
and Ukraine as well as other European countries as listed in the table below.

Japan and New Zealand are among the industrial countries that might be considered as
new markets. Notice that the former is topping the list of all identified countries in the table
below given that its potential market size stood at $ 8,427 million.

Many Asian countries represent new export markets for Dubai as their potential market
size is estimated at $ 4,234 million. However, China, Malaysia and Sri Lanka are the major
Asian destination markets as their shares in the total estimated potential market size are
considerable (82% for the former and 7% for each of the latter, respectively).

As regards Africa, the potential market size is estimated at $ 1,115 million of which
South Africa is representing 96%. This indicates that South Africa is major importer of these
product categories. In addition, it is also an exporter of these product categories (i.e., two-way
trade). However, it is obvious the low level of imports of pearls, precious metals, stones &
articles thereof in all the above listed African countries except for South Africa.

21

The new export markets identified in the Western Hemisphere contains mainly Mexico
and Brazil followed by other countries with total potential market size of $ 1,094 million. A little
bit lower is the potential market size of the Middle East (i.e. $ 864 million) with Lebanon and
Jordan topping the list of new markets. Nevertheless, Lebanon might not be seen as potential
new export market for pearls, precious metals, stones & articles thereof for the time being given
the recently concluded war and its actual political situation.
Table 5.1.5: New Export Markets for Pearls, precious metals, stones & articles thereof (HS Code 71)*
Developing Countries
Industrial
Western
Countries
Africa
Asia
Europe
Middle East
Hemisphere
Brazil (266)
Egypt
Russia (68)
S. Africa (1,105) Sri Lanka (310)
Japan (8,427)
Colombia (22)
Jordan (235)
Azerbaijan
S. Korea
Ghana (0.735)
New Zealand
Venezuela
Lebanon (526)
Armenia (347)
Malaysia (310)
Nigeria (0.259)
(144)
Argentina (44)
Syria
Bulgaria (21)
Taiwan
Kenya (0.828)
Austria (654)
Ecuador (10)
Oman (94)
Czech Rep.
Afghanistan
Tanzania
Finland (84)
Mexico (752)
Libya
(124)
Indonesia (10)
Uganda (0.229)
Greece (190)
Yemen (9)**
Poland (163)
Bangladesh
Senegal (2)
Ireland (304)
Malta (40)
(1)**
Congo
Luxembourg
Romania
Cambodia (16)
Benin (0.734)
(46)
Estonia (14)
China (3,469)
Mozambique
Portugal (267)
Kazakhstan (27)
Nepal (6)
(0.068)
Ukraine (210)
Philippines
Ethiopia (1)***
(112)
Mali (0.183)**
Vietnam
Rwanda
(0.010)***
Sierra Leone
Gabon
(0.114)**
Zambia (0.854)
Morocco (43)
Algeria (7)**
Cameroon
(0.044)
Gambia (0.009)
Comoros
Chad
Mauritania
Namibia
(15)***
Somalia
Sudan (1)
Zimbabwe
(0.674)**
* Figures between parentheses are countrys total imports of (Pearls, precious metals, stones & articles thereof)
from the whole world in US $ Million. Data are of year 2005 unless otherwise stated.
** Data of 2004.
*** Data of 2003.
Source: UAE Ministry of Economy & COMTRRADE Database

22

5.1.6. Iron and steel (HS Code 72)

For iron and steel, industrial countries (especially European ones) represent a very
promising new market for Dubai exports (see Table 5.1.6). Total European potential market size
is around $ 20,391 million. Many countries showed high levels of imports of iron and steel such
as Greece, Finland, Norway, Portugal, Spain, Sweden, Switzerland, Russia, Czech Republic,
Hungary, Poland, Rumania, Slovak Republic, Slovenia, and Ukraine. Furthermore, although with
limited potential market size compared to the rest of countries, New Zealand was listed among
Dubais potential new export markets for iron and steel.
Table 5.1.6: New Export Markets for Iron and steel (HS Code 72)*
Developing Countries
Industrial
Countries
Africa
Asia
Europe
Middle East
Greece(1,742)
Finland (2,392)
Ireland (652)
Luxembourg
(652 )
New Zealand
(427)
Norway (1,056)
Portugal (2,091)
Spain (10,466)
Sweden (4,588)
Switzerland
(2,321)

Congo
Mauritania (11)
Senegal (110)
Guinea
Mozambique
(43)
Sierra Leone
Gabon (13)**
Zambia (71)
Uganda (110)
Ethiopia (144)
Liberia
Ivory Coast
Mali (46)**
Zimbabwe
(54)**

Western
Hemisphere

Afghanistan
Indonesia
(3,344)

Russia (2,545)
Syria (702)**
Argentina (716)
Uzbekistan
Lebanon
Brazil (895)
Armenia (38)
(297)**
Mexico (5,615)
Kazakhstan
(658)
Macedonia
Bosnia (298)
Bulgaria (4)
Croatia (644)
Czech Rep.
(3,552)
Hungary (1,351)
Poland (4,173)
Romania (1,364)
Slovak Rep.
(1,156)
Slovenia (1,136)
Ukraine (1,151)
* Figures between parentheses are countrys total imports of (Iron and steel) from the whole world in US $ Million.
Data are of year 2005 unless otherwise stated.
** Data of 2004.
Source: UAE Ministry of Economy & COMTRRADE Database

From Asia, Indonesia has shown high potential market size of $ 3,344 million. Whereas,
Mexico was topping the list of potential new markets from the Western hemisphere followed by
Brazil and Argentina. Syria and Lebanon were the candidates for new export markets from the
Middle East as both had potential market size of $ 999 million in 2005.

23

Lastly, many countries appeared in the list of potential new markets from Africa but with
limited potential market size at both individual and aggregate level (i.e., total potential market
size is around $ 602 million).

5.1.7. Articles of iron or steel (HS Code 73)

Europe is the main new market identified for Dubais exports of articles of iron or steel as
its potential market size stood at $ 17,647 million. Major potential destination countries are
Norway, Denmark, Romania, Czech Republic, Poland, Hungary, and Slovak Republic. Table
5.1.7 below lists the rest of European countries identified as potential new export markets.
Table 5.1.7: New Export Markets for Articles of iron or steel (HS Code 73)*
Developing Countries
Industrial
Countries
Africa
Asia
Europe
Middle East

Western
Hemisphere

Brazil (1,065)
Uzbekistan
Paraguay (26)**
Romania (1,140)
Venezuela (788)
Czech Rep.
Guatemala (126)
(2,415)
Colombia (354)
Estonia (315)
Ecuador (220)
Latvia (275)
Peru (280)
Poland (2,968)
Argentina (602)
Bulgaria (331)
Mexico (5,506)
Lithuania (372)
Hungary (1,682)
Croatia (592)
Macedonia
Slovak Rep.
(1,074)
Slovenia (545)
* Figures between parentheses are countrys total imports of (Articles of iron or steel) from the whole world in US $
Million. Data are of year 2005 unless otherwise stated.
** Data of 2004.
*** Data of 2003.
Source: UAE Ministry of Economy & COMTRRADE Database
Greece (635)
Norway (2,789)
Denmark
(1,944)
Iceland (229)
Luxembourg
(341)

Comoros
Gambia (3)
Zambia (75)
Malawi (15)
Guinea
Sierra Leone
Vietnam
Swaziland
Botswana
(199)***
Namibia
(56)***
Niger (16)

Bangladesh
(100)**

The second new market for exports is the Western Hemisphere with total potential
market size of $ 8,967 million. Mexico, Brazil, and Venezuela are the major destination
countries.

24

From Asia, we have Bangladesh as new export market but with limited potential market
size of $ 100 million. Furthermore, several African countries were identified as new export
markets as well but their total potential market size is somehow limited.

5.1.8. Ceramic products (HS Code 69)

New markets for Dubais exports of ceramic products are generally limited in terms of
total potential market size compared to previously presented product categories. For instance,
Europe potential market size stood at $ 1,953 million with Austria, Romania, and Czech
Republic topping the list of destination countries.
Table 5.1.8: New Export Markets for Ceramic products (HS Code 69)*
Developing Countries
Industrial
Countries
Africa
Asia
Europe
Middle East

Western
Hemisphere

Jordan (65)
Chile (114)
Azerbaijan (31)
Brazil (113)
Kazakhstan
Argentina (88)
(142)
Mexico (402)
Lithuania (70)
Romania (306)
Bulgaria (122)
Albania (70)
Bolivia (10)
Slovak Rep.
(117)
Croatia (143)
Czech Rep.
(288)
Slovenia (99)
* Figures between parentheses are countrys total imports of (Ceramic products) from the whole world in US $
Million. Data are of year 2005 unless otherwise stated.
** Data of 2004.
*** Data of 2003.
Source: UAE Ministry of Economy & COMTRRADE Database
Austria (489)
Luxembourg
(66)

Mali (8)**
Botswana
(25)***
Rwanda (2)***
Namibia (6)***
Niger (4)
Chad

China (30)
Nepal (6)***
Malaysia (138)
Indonesia (111)

The Western Hemisphere is identified as the second new export markets with total
potential market size of $ 717 million. Mexico is the main market followed by Chile, Brazil, and
Argentina. From Asia, Malaysia and Indonesia are main identified countries. At the same time,
Jordan is found to be a new export market in the Middle East. Lastly, some African countries
were identified as potential new markets as well but their potential market size is very limited.

25

5.1.9. Articles of apparel, not knitted or crocheted (HS Code 62)

Europe seems the most promising market for Dubais exports of articles of apparel, not
knitted or crocheted. Its total potential market size is $ 7,482 million and major countries are
Greece, Denmark, Norway, Russia, Turkey Romania, and Hungary.
Table 5.1.9: New Export Markets for Articles of apparel, not knitted or crocheted (HS Code 62)*
Developing Countries
Industrial
Western
Countries
Africa
Asia
Europe
Middle East
Hemisphere
Lebanon (169)
Colombia (53)
Bangladesh
Russia (448)
Morocco (122)
Syria (0.250)
Venezuela (213)
(285)**
Turkey (433)
Nigeria (3)**
Brazil (164)
Kazakhstan (44)
Mozambique (8) Nepal (40)***
Guatemala (110)
Indonesia (30)
Uzbekistan
Ivory Coast
Salvador
Philippines (43) Armenia (15)
Congo
Uruguay (23)
Thailand (114)
Latvia (100)
Ghana (814)
Taiwan
Czech Rep.
Sierra Leone
Vietnam
(749)
Comoros
Estonia (115)
Guinea
Bulgaria (170)
Mali (0.962)**
Romania (360)
Malawi (5)
Slovenia
Cameroon (4)
Lithuania (107)
Congo
Bosnia (105)
Gabon (2)
Macedonia
Liberia
Croatia (207)
Angola
Malta (60)
Zimbabwe (9)
Albania (75)
Gambia (0.451)
Slovak Rep.
Chad
(159)
Niger (2)
Hungary (416)
Mauritania (2)
Rwanda (1)
Botswana
(51)***
Namibia
(16)***
Swaziland
(16)***
* Figures between parentheses are countrys total imports of (Articles of apparel, not knitted or crocheted) from the
whole world in US $ Million. Data are of year 2005 unless otherwise stated.
** Data of 2004.
*** Data of 2003.
Source: UAE Ministry of Economy & COMTRRADE Database
Greece (957)
Denmark
(1,721)
Norway (958)
Luxembourg
(202)
Iceland (81)

A large list of African countries is identified as potential new export markets as shown in
the table above. Nevertheless, although potential market size for each individual country is not
very attractive because it is limited (except for Ghana), the total potential market size as a whole

26

seems promising ($ 1,056 million). Furthermore, Asia showed a total potential market size of $
512 million with Bangladesh and Thailand as major new export markets.

As for the Western Hemisphere, Venezuela is the major new export market followed by
Brazil, Guatemala and other countries. Total potential market size is $ 563 million, which is
comparable to that of Asia. Lastly, Lebanon and Syria were among the list of Middle East
countries proposed as new markets. Unfortunately, the latters potential market size is very
limited.

5.1.10. Glass and glassware (HS Code 70)

As regards to glass and glassware, industrial countries -especially those from Europe- are
identified as new export markets. More specifically, the total potential market size of Europe is
estimated at $ 3,311 million where major countries comprise Denmark, Portugal, and Poland. In
addition, Japan is the identified new export market with highest potential market size ($ 1,867
million) between all new markets identified worldwide for Dubais exports of glass and
glassware.
Table 5.1.10: New Export Markets for Glass and glassware (HS Code 70)*
Developing Countries
Industrial
Countries
Africa
Asia
Europe
Middle East

Western
Hemisphere

Chile (85)
Oman (48)
Romania (250)
Thailand (429)
Mauritania
Guatemala (48)
Jordan (45)
Lithuania (92)
Taiwan
(0.965)
Argentina (110)
Syria (30)**
Slovenia (183)
Vietnam
Gambia (0.943)
Brazil (288)
Bulgaria (102)
Zimbabwe (6)**
Colombia (98)
Poland (748)
Congo
Mexico (1,230)
Estonia (72)
Tunisia (47)
Slovak Rep.
sierra Leone
(214)
Liberia
Malawi (9)
Niger (0.904)
* Figures between parentheses are countrys total imports of (Glass and glassware) from the whole world in US $
Million. Data are of year 2005 unless otherwise stated.
** Data of 2004.
Source: UAE Ministry of Economy & COMTRRADE Database
Greece (258)
Japan (1,867)
Denmark (563)
Switzerland
Norway (285)
Luxembourg
(118)
Portugal (426)

Furthermore, the second largest new export market is Mexico in the Western hemisphere
with potential market size of $ 1,230 million. There are other countries in the same region which

27

could be seen as new markets as well. These are Chile, Guatemala, Argentina, Brazil, and
Colombia.

From Asia, Thailand is the main new market identified with potential market size of $
429 million. Moreover, three countries from the Middle East were listed among the candidates
for new export markets (i.e., Oman, Jordan, and Syria) but their potential market size is limited.
Lastly, African countries had the lowest potential market size amongst all regions mentioned
above, showing low level of attraction to be considered as new promising export markets.

5.2. Re-exports

In this section we will present potential new markets for re-export product categories
identified in Section 4 (Table 4.4). Before proceeding, it is important to mention that four reexport product categories (HS Codes: 39, 62, 71, and 73,) were also identified as major export
product categories previously in sub-section 5.1. Therefore, some potential new markets might
appear in both sections (i.e. export and re-export) given that the used criterion relies on looking
at total imports reported by destination countries. Total imports values do not distinguish
whether the imported product category is an export or re-export of the destination country.

5.2.1. Pearls, precious metals, stones & articles thereof (HS Code 71)

China is the major identified market for Dubai re-exports of pearls, precious metals,
stones & articles thereof. Its potential market size is $ 3,469 million (see Table 5.2.1). Other
countries from Asia were identified as new re-export markets but their potential market size is
limited.
Five European countries are new re-export candidates with total potential market size of
$ 841 million. These are in order of importance Ireland, Portugal, Ukraine, Luxembourg, and
Estonia.

28

5.2.1: New Export Markets for Pearls, precious metals, stones & articles thereof (HS Code 71)
Developing Countries
Industrial
Western
Countries
Africa
Asia
Europe
Middle East
Hemisphere
Ireland (304)
Luxembourg (46)
Portugal (267)

Swaziland
Cambodia
(16)**
Chad
Mauritania
(0.027 )
Namibia
(15)***
Zimbabwe
(0.854)

Bangladesh
(2)**
China (3,469)
Nepal (6)***
Philippines
(112)
Vietnam

Estonia (14)
Ukraine (210)

Sudan (1)
Yemen (9)**

Argentina (45)
Ecuador (10)
Mexico (752)

* Figures between parentheses are countrys total imports of (Pearls, precious metals, stones & articles thereof)
from the whole world in US $ Million. Data are of year 2005 unless otherwise stated.
** Data of 2004.
*** Data of 2003.
Source: UAE Ministry of Economy & COMTRRADE Database

The Western Hemisphere is the third potential identified market with Mexico topping the
list of candidate countries followed by Argentina and Ecuador. Moreover, some candidate
countries from Africa and the Middle East were also proposed but their potential market size is
not very high.

Finally, note that this product category is one of Dubais major exports for which new
export markets were identified previously in Section 5.1.1. Therefore, it is not surprising to find
all the above identified countries present in the list of potential new export markets.

5.2.2. Electrical machinery, sound recorders and parts (HS Code 85)

For this product category, there are few new re-export markets identified. Specifically,
Iceland is the first new potential market followed by Jamaica. Potential absorption capacities
were $ 484 and 291 million, respectively.

29

5.2.3. Vehicles other than railway or tramway; parts (HS Code 87)

Luxembourg is the only new re-export market identified for Dubais re-exports of
vehicles other than railway or tramway; parts. Its potential market size stood at $ 2,076 million.

5.2.4. Nuclear reactors, boilers, machinery & parts thereof (HS Code 84)

No potential new markets were identified for Dubais re-exports of nuclear reactors,
boilers, machinery & parts thereof. The total value of Dubai re-exports of this product category
to the world is already small (i.e., AED 6.8 billion in 2005) and almost 30% of it is being sent to
Iran. In addition, the list of other major destinations of this product category includes GCC
countries.

5.2.5. Man-made filaments (HS Code 54)

The Western Hemisphere is identified as potential new market for Dubais re-exports of
man-made filaments. Mexico is the major country with potential market size of $1,074 million
followed by Peru and Chile (see Table 5.2.2).
5.2.2: New Export Markets for Man-made filaments (HS Code 54)
Industrial
Countries
Denmark (178)
Luxembourg (237)

Developing Countries
Africa

Asia

Europe

Middle East

Western
Hemisphere

Taiwan

Chile (76)
Mexico (1,074)
Peru (79)
* Figures between parentheses are countrys total imports of (Man-made filaments) from the whole world in US $
Million. Data are of year 2005.
Source: UAE Ministry of Economy & COMTRRADE Database

Furthermore, two European industrial countries (i.e., Denmark and Luxembourg) were
also identified as new potential markets. Their total potential market size is $ 415 million.

30

5.2.6. Articles of apparel, not knitted or crocheted (HS Code 62)

For Dubais re-exports of Articles of apparel, not knitted or crocheted, two main markets
were identified: Europe and Western Hemisphere. See Table 5.2.3. On the one hand, three
countries are included among the list of European countries. Hungary is topping the list followed
by Slovak Republic and Albania. Their total potential market size is $ 650 million. On the other
hand, the Western Hemisphere candidate countries are Argentina, Peru, Jamaica, and Uruguay
with total potential market size of $ 193 million.
5.2.3: New Export Markets for Articles of apparel, not knitted or crocheted (HS Code 62)
Industrial
Countries

Developing Countries
Africa

Asia

Europe

Middle East

Western
Hemisphere

Albania (75)
Hungary (416)
Slovak Rep.
(159)

Argentina (76)
Peru (51)
Salvador
Jamaica (43)**
Uruguay (23)
* Figures between parentheses are countrys total imports of (Articles of apparel, not knitted or crocheted) from the
whole world in US $ Million. Data are of year 2005 unless otherwise stated.
** Data of 2004.
Source: UAE Ministry of Economy & COMTRRADE Database

Lastly, note that the three European countries were previously identified as potential
export markets in sub-section (5.1.9), given that this product category is among major Dubai
exports. In contrast, Uruguay is the only country that has been identified as new export and reexport market (see sub-section 5.1.9), whereas Argentina, Peru, and Jamaica appear only in the
list of new re-export markets.

5.2.7. Rubber and articles thereof (HS Code 40)

With total potential market size of $ 5,463 million, the Western Hemisphere seems to be
the most attractive new market for Dubais re-exports of rubber and articles thereof (see Table
5.2.4). Mexico and Brazil are the main two new markets identified.

31

5.2.4: New Export Markets for Rubber and articles thereof (HS Code 40)
Industrial
Countries

Developing Countries
Africa

Greece (374)
Portugal (741)

Asia

Europe

Middle East

Western
Hemisphere

Indonesia (610)

Croatia (184)
Brazil (1,589)
Estonia (92)
Colombia (434)
Hungary (850)
Jamaica (48)**
Slovak Rep.
Mexico (3,151)
(589)
Peru (241)
* Figures between parentheses are countrys total imports of (Rubber and articles thereof) from the whole world in
US $ Million. Data are of year 2005 unless otherwise stated.
** Data of 2004.
*** Data of 2003.
Source: UAE Ministry of Economy & COMTRRADE Database

In the second place comes Europe with total potential market size of $ 2,830 million. The
list of new identified markets comprises six countries: Greece, Portugal, Croatia, Estonia,
Hungary, and Slovak Republic. Lastly, Indonesia is also identified as new re-export market from
Asia with potential market size of $ 610 million.

5.2.8. Furniture, bedding, mattresses, lamps & fittings, signs (HS Code 94)

Represented by three countries (Croatia, Slovak Republic, and Slovenia), Europe is

identified as the main new market for Dubais re-exports of furniture, bedding, mattresses, lamps
& fittings, signs. Total potential market size stood at $ 1,430 million (see Table 5.2.5).
5.2.5: New Export Markets for Furniture, bedding, mattresses, lamps &fittings, signs (HS Code 94)
Industrial
Countries

Developing Countries
Africa

Asia
Nepal (7)***

Europe

Middle East

Croatia (401)
Slovak Rep.
(478)
Slovenia (551)
* Figures between parentheses are countrys total imports of (Furniture, bedding, mattresses,
signs) from the whole world in US $ Million. Data are of year 2005 unless otherwise stated.
*** Data of 2003.
Source: UAE Ministry of Economy & COMTRRADE Database

Western
Hemisphere
Venezuela (171)
Argentina (143)
Peru (53)
lamps & fittings,

32

The Western Hemisphere could also bee seen as new re-export market but with limited
total market size (i.e., $ 367 million). Candidate countries are Venezuela, Argentina, and Peru.
Lastly, although Nepal is identified as new re-export market from Asia, its potential market size
is very low ($ 7 million).

5.2.9. Articles of iron or steel (HS Code 73)

Europe and the Western Hemisphere are the two regions identified as new markets for
Dubais re-exports of articles of iron or steel (see Table 5.2.6). The former has total potential
market size of $ 5,526 million while that of the latter is $ 6,204 million.
5.2.6: New Export Markets for Articles of iron or steel (HS Code 73)
Industrial
Countries

Developing Countries
Africa

Asia

Europe

Middle East

Western
Hemisphere

Austria (3,045)
Iceland (229)
Luxembourg (41)

Croatia (592)
Argentina (602)
Macedonia
Jamaica (96)**
Slovak Rep.
Mexico (5,506)
(1,074)
Slovenia (545)
* Figures between parentheses are countrys total imports of (Articles of iron or steel) from the whole world in US $
Million. Data are of year 2005 unless otherwise stated.
** Data of 2004.
Source: UAE Ministry of Economy & COMTRRADE Database

Mexico and Argentina are the major new re-export markets from the Western
Hemisphere. Note that these two countries were previously proposed as new export markets in
sub-section (5.1.7), given that articles of iron or steel are also listed among Dubais major
exports product categories. In addition, as regards to Europe, Austria, Slovak republic, Croatia,
and Slovenia are main identified new markets. All these European countries were also previously
proposed as new export markets in sub-section (5.1.7) except for Austria.

5.2.10. Plastics and articles thereof (HS Code 39)

As shown in the table 5.2.7 below, the Western Hemisphere is a new identified market
for Dubais re-exports of plastics and articles thereof. Total potential market size stood at $

33

18,213 million which seems very promising. Mexico is the major identified new market as its
share is around 79% of the total.
5.2.7: New Export Markets for Plastics and articles thereof (HS Code 39)
Industrial
Countries

Developing Countries
Africa

Asia

Europe

Middle East

Western
Hemisphere

Ecuador (505)
Uruguay (255)
Peru (770)
Mexico (14,349)
Cuba (181)**
Argentina (1,496)
Dominican Rep.
(7)
Venezuela (650)
* Figures between parentheses are countrys total imports of (Plastics and articles thereof) from the whole world in
US $ Million. Data are of year 2005 unless otherwise stated.
** Data of 2004.
Source: UAE Ministry of Economy & COMTRRADE Database

Note that many of these countries were already identified as new export markets in subsection 5.1.4, as this product category is listed among Dubais major exports.

34

6. Summary and Conclusions

In this report, it has been shown that Dubai exports and re-exports are modest in terms of
absolute values and they grow slowly compared to imports. In addition, exports and re-exports
exhibit high dependency (or concentration) ratios for both trading partners and product
categories. Consequently, the need to enhance the performance of exports and re-exports
becomes necessary. Therefore, new markets for Dubai top 10 export and re-export product
categories were identified.

For Dubai exports, the major new identified markets are presented in Table 6.1. Although
Europe is already one of Dubai major trading partners as a bloc, several individual European
countries are identified as potential new markets for Dubais exports of many product categories.
This is because Dubai has no foreign trade at all with these European countries for the product
categories listed in the table below.
Table 6.1: New Markets for Dubai Exports
HS
Code

Product Category

New Markets

76

ALUMINUM AND ARTICLES THEREOF

Europe.

17

SUGARS AND SUGAR CONFECTIONERY

Europe, Japan, New Zealand, Asia, Africa, and

Western Hemisphere.

27

MINERAL FUELS, OILS, WAXES AND

BITUMINOUS SUBSTANCES

Europe, Canada, Jordan, and Mexico.

39

PLASTICS AND ARTICLES THEREOF

Europe and Western Hemisphere.

71

PEARLS, PRECIOUS METALS, STONES &

ARTICLES THEREOF

72

IRON AND STEEL

Japan, New Zealand, Europe, China, South Africa,

Mexico, Brazil, and Jordan.
Europe, New Zealand, Indonesia, Mexico, Argentina,
Brazil, and Syria.

73

ARTICLES OF IRON OR STEEL

69

CERAMIC PRODUCTS

62

ARTICLES OF APPAREL, NOT KNITTED

OR CROCHETED

Europe, Western Hemisphere, Malaysia, Indonesia,

and Jordan.
Europe, Ghana, Bangladesh, Thailand, Venezuela,
Brazil, and Guatemala.

70

GLASS AND GLASSWARE

Europe, Japan, Mexico, and Thailand.

Europe, Mexico, Brazil, and Venezuela.

Moreover, the Western Hemisphere (especially Mexico and Brazil) is another potential
new market for Dubai exports of many product categories. From the Middle East, Jordan appears
35

to be a promising candidate for exports of many product categories while Syria could be seen as
new market for Dubai exports of iron and steel.

Some industrial countries such as Japan, Canada, and New Zealand, together with other
Asian countries have also been identified as potential new export markets. However, although
African countries are among the candidate countries for new export markets, their total potential
market size is much lower than the rest of candidate countries making them relatively less
attractive.

As regards to re-exports, Table 6.2 lists countries identified as main potential new
markets. Unlike exports, identified markets here are limited due to the fact that Dubai is known
as re-export hub and many of its product categories are widely re-exported to numerous
countries. In addition, some main re-export product categories (i.e. those marked with an asterisk
in the table) are already listed previously among Dubai major exports.
Table 6.2: New Markets for Dubai Re-exports
HS
Code
71*
85
87
84

Product Category
PEARLS, PRECIOUS METALS, STONES &
ARTICLES THEREOF
ELECTRICAL MACHINERY, SOUND
RECORDERS AND PARTS
VEHICLES OTHER THAN RAILWAY OR
TRAMWAY; PARTS
NUCLEAR REACTORS, BOILERS,
MACHINERY & PARTS THEREOF

New Markets
China, Europe, and Mexico.
Iceland and Jamaica
Luxembourg.
(None )

54

MAN-MADE FILAMENTS

Denmark, Luxembourg, Mexico, Chile, and Peru.

62*

ARTICLES OF APPAREL, NOT KNITTED

OR CROCHETED

Hungary.

40

RUBBER AND ARTICLES THEREOF

Western hemisphere, Europe, and Indonesia.

94

FURNITURE, BEDDING, MATTRESSES,

LAMPS & FITTINGS, SIGNS

Croatia, Slovak Republic, and Slovenia.

73*

ARTICLES OF IRON OR STEEL

Mexico, Argentina, Austria, Slovak Republic, Croatia,

and Slovenia.

39*

PLASTICS AND ARTICLES THEREOF

Western Hemisphere.

* Denotes top re-export product categories that are listed also as top exports as indicated in Table 5.1.

36

Similar to exports, the European countries seem to be once again potential new
candidates for Dubai re-exports, especially Ukraine, Ireland, Portugal, Luxembourg, Iceland,
Denmark, Hungary, Austria, Croatia, Slovak Republic, and Slovenia. Furthermore, the Western
Hemisphere is also a potential new re-export market. Major countries are Mexico, Argentina,
Chile, Peru, and Jamaica. Lastly, China is the main new market from Asia for re-exports of
pearls, precious metals, stones & articles thereof.

Interestingly, the potential market size for the newly identified re-export markets is not so
high and attractive compared to the newly identified markets for exports. Therefore, while many
promising markets are identified in this report as potential new ones for Dubai exports, for the
case of re-exports it is quite different. Hence, we recommend the check for potential
enhancement in actual trade level of Dubai re-exports to already existing markets given that its
re-exports are in general widely spread. This issue can be the concern of future research.

Finally, it is worth mentioning here that the new export/re-export markets identified in
this report are general guidelines to potential opportunities. However, a more detailed research
must be conducted for each of the proposed markets separately in order to identify whether it is a
real potential new market or not. Matters to be addressed include finding out reasons for not
exporting to this destination country, rules of origins, trade and non-trade barriers, etc. Backed
up with the government support, exporters must also further explore these markets in order to be
able to draw an export plan which helps in penetrating these markets. In line with this context,
creating active export councils for each major exported/re-exported product category would be
fruitful. These councils duties would cover, for example, preparing brochures of available
species and varieties, suppliers directory, international promotional programs and exhibitions,
etc.

37

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