UAE’s Bilateral Trade with Japan hits AED 140 bln

The United Arab Emirates (UAE) and Japan have been strengthening their bilateral ties, resulting in a significant increase in non-oil trade between the two nations.

The volume of trade exchange between the UAE and Japan reached 140 billion dirhams in 2023, and includes petroleum products, as the UAE has acquired 39.1% of Japan’s total trade.

In the first half of 2023, the non-oil trade volume reached an impressive $7.4 billion, reflecting the growing economic cooperation and mutual interests of both countries.

Both the UAE and Japan have recognized the value of strategic partnerships in achieving their economic goals. The UAE’s vision to become a global trade and logistics hub has aligned well with Japan’s desire to expand its presence in the Middle East and diversify its supply chains.

The two countries have actively collaborated in sectors such as energy, technology, innovation, and finance, fostering an environment conducive to increased trade and investment.

The $7.4 billion non-oil trade volume achieved during the first half of 2023 is a testament to the success of the UAE-Japan partnership. The trade relationship has experienced steady growth over the years, with both countries continuously exploring new avenues for cooperation. 

The diversification of trade products has been a key driver, with sectors such as machinery, electronics, automobiles, chemicals, and food products witnessing significant growth.

The UAE is Japan’s top trading partner in terms of exports and imports in the Arab world, absorbing 40 per cent of Japan’s exports to the region and providing 39 per cent of Japan’s imports from the region

The UAE is also the source for 42 per cent of foreign direct investment inflows to Japan from the Mena region.

The stock value of Japanese investments in the UAE market is estimated at $14 billion with 10,000 Japanese companies or agencies operating in various sectors including technology, renewable energy, transport and health care.

Trade between Japan and the GCC in 2021 was about US$80 billion, with Saudi Arabia and the UAE accounting for about 80% of the total. Japan was the fourth largest GCC import and export market in 2023. Exports from the GCC to Japan are worth US$76.7 billion, while exports by Japan to the GCC to Japan are worth US$22 billion.