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WEEKLY NEWSLETTER
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United Arab Emirates
Index
The UAE, in particular Dubayy, epitomizes trade. The
federal
government promotes open and free trade as an official
policy,
and a thriving source of income and full employment has
resulted.
The oil economy (world prices and demand as well as local
production) and regional security strongly influence
trade. Oil
and gas exports account for about three-fourths of all
exports.
The UAE's balance of trade surplus grew during the boom
years of
the 1970s but leveled off in the 1980s with decreased oil
production. Although the Iran-Iraq War buffeted the oil
economies
of the region, Dubayy's fruitful trade links with Iran
helped it
to have exports and reexports of US$354 million in 1987.
The end of the Iran-Iraq War in 1988 led to a 20
percent
increase in UAE imports, reducing the trade surplus from
its 1987
level of US$5.2 billion (Dh19 billion) to US$3.7 billion
(Dh13.7
billion) (see
table 30, Appendix). But oil price increases
andproduction increases resulting from Iraq's invasion of
Kuwait
in 1990 created a windfall for the UAE and drove the
federation's
trade surplus to US$9.3 billion (Dh34.1 billion).
Administering customs and setting rates are functions
reserved to the individual amirates, and duties and
regulations
therefore vary among them. In 1982 Dubayy and Sharjah
reduced
their customs duties from 3 percent to 1 percent, bringing
them
on a par with Abu Dhabi's tariffs. In 1983 a 4 percent
general
import tariff was imposed to conform to agreements among
GCC
members on minimum duties.
Principal imports are manufactured goods, machinery,
transportation equipment, food, and live animals. Leading
suppliers in 1988 were Japan, Britain, and the United
States.
Nonpetroleum exports include basic manufactures, aluminum,
and
cement. The reexport trade overshadows national exports.
Federal
exports, which consist largely of petroleum, go mainly to
Japan
(see
table 31, Appendix). In 1988 national exports
amounted to
US$518 million while reexports stood at more than US$2
million.
Iran, Qatar, and Saudi Arabia are the principal recipients
of
reexports. The view along Dubayy's bustling creek gives
ample
evidence of the vibrant reexport trade. Scores of large,
motorized dhows tied up four and five deep line the wharf,
their
decks and holds packed with refrigerators, television
sets,
clothing, toys, and even automobiles. In 1991 Dubayy's
imports
(much of which was destined for reexport) arrived from
Japan, the
United States, China, Britain, and the Republic of Korea
(South
Korea).
Data as of January 1993
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