A Gateway to Global Trade 

The United Arab Emirates (UAE) has firmly established itself as a central player in the global economy, leveraging rapid modernisation and strategic economic policies. The UAE’s openness to international business and its pro-business environment means that business opportunities are endless, making it a prime destination for global exporters seeking to enter a dynamic market. 

UAE International Trade 

Its strategic location between Europe, Asia, and Africa, has helped the UAE position itself as a key market in the region. Its world-class infrastructure, such as Jebel Ali Port—the largest in the Middle East and the world’s largest man-made harbour—alongside Dubai International Airport, which handled nearly 87 million passengers in 2023, makes importing and exporting to and from the UAE both highly competitive and remarkably efficient. These key infrastructure assets play a crucial role in facilitating global trade and logistics.

Additionally, the UAE’s strong legal framework and stable political environment offers security and predictability for foreign investors. The UAE ranks 16th globally in the World Bank’s Ease of Doing Business, reflecting its business-friendly climate. 

Latest Events 

The UAE has been active on the global stage, particularly in international diplomacy and trade. In 2023, it successfully hosted COP28, highlighting its commitment to sustainability and climate action. The UAE also continues to expand its network of Comprehensive Economic Partnership Agreements (CEPA). For instance, the CEPA with India, signed in 2022, is expected to boost bilateral trade to over $100 billion annually by 2030, while the agreement with Turkey aims to enhance trade to $40 billion within five years. 

Diversified Economy 

The UAE economy is among the most diversified in the region, while oil still contributes around 30% to the national GDP, the non-oil sector now accounts for approximately 70%, with key industries including tourism, real estate, aviation, and financial services becoming more prominent in recent years. In 2023 the UAE’s GDP was estimated at $501 billion with growth projected at 3.5% for 2024. Dubai and Abu Dhabi, the two largest Emirates, are leading this diversification, attracting substantial foreign investment through Free Trade Zones and business-friendly regulations.  

When focusing on imports, it's clear that the UAE is undergoing significant diversification, with an increasing number of companies from various industries establishing a presence in the region like never before. The Top 5 imported products in the UAE in recent years, along with their market value, are as follows. 

1. Gold – ($57.1 billion) 
2. Broadcasting Equipment – ($20.3 billion) 
3. Refined Petroleum – ($19.5 billion) 
4. Diamonds – ($17.5 billion) 
5. Cars – ($12.9 billion) 

The largest import partners for these goods include countries like China, India, the United States, and the United Kingdom.  

Sustainability Focus 

The UAE has made significant strides in promoting business sustainability as part of its broader commitment to environmental and economic resilience. The nation is investing heavily in renewable energy, with plans to generate 50% of its energy from clean sources by 2050. In 2023, the UAE’s investments in renewable energy projects reached over $50 billion, with a focus on solar and wind energy. Additionally, the UAE ranked 1st in the Middle East and North Africa in the 2022 Global Green Economy Index, reflecting its leadership in sustainable business practices.  

UAE: A Prime Opportunity for UK International Trade 

The United Arab Emirates (UAE) represents a significant opportunity for UK businesses looking to expand their international trade footprint. With bilateral trade between the UK and UAE reaching approximately £18.6 billion in 2022, the UAE stands as the UK’s largest trading partner in the region, highlighting the deep economic ties between the two nations. 

The UAE's ambitious economic diversification strategy aims to reduce reliance on oil by fostering growth in sectors such as technology, finance, healthcare, and renewable energy. This shift presents significant opportunities for UK businesses, particularly in sectors where the UK has strong expertise. With the UK being a global leader in clean energy, there is significant potential for collaboration. 

The UAE offers UK businesses a compelling combination of a strong economic relationship, a favourable business environment, and access to emerging markets. With the UAE's ongoing efforts to diversify its economy and invest in sustainable development, the potential for UK companies to contribute to and benefit from this growth is substantial. 

The Department for Business and Trade identifies the UAE as a growing market for UK exports, with total exports reaching £14.3 billion in the four quarters leading up to Q4 2023. Over 5,000 British companies are currently operating in the region, reflecting the increasing opportunities for UK businesses. Companies looking to expand into cities like Dubai must establish a physical office, which is an important factor to consider when setting up operations. Additionally, trade barriers such as taxes and tariffs may lead to delays in exporting to the UAE, so it is essential for UK businesses to seek expert legal and trade advice before entering the market. 

Bespoke Market Research 

International trade offers exciting opportunities but can be overwhelming, especially for companies with no prior experience in global markets. Our advice to overcome these challenges is to be well-prepared, thorough, and seek guidance from market experts who can help you navigate the path to success in your international ventures. 

The London Chamber, through its Business Information Services—exclusively available to Premier Plus Members—provides companies with access to tailored overseas market insights. Our reports cover: 

• Economic overviews of target countries 
• High-demand UK products and services 
• Export and import procedures 
• Key considerations for doing business in specific countries 
• Import and export data for the UK and global markets 

As the UK's largest provider of trade documentation and certification services, LCCI can also assist with UK and Arab Certificates of Origin to streamline your exports to the UAE.

This article was compiled with information from: UK Government's Trade and Investment Factsheets, Doing Business Report, World Integrated Trade Solution, Statista, UAE Energy Strategy 2050, Global Green Economy Index, Trans.INFO, Sea Rates by DP World, HSBC, DBT, and United Arab Emirates Ministry of Economy.

This article was written by Hamad Alsarrah, Summer Intern at LCCI and edited by Freya Bishop, LCCI’s International Business Assistant.