Africa - Dubai's Traditional Trade Partner

by Abdul Rahman G. Mutaiwee, Former Director-General Dubai Chamber of Commerce & Industry (DCCI)

Since early history, Dubai has occupied an outstanding position on the trade map of this region. It has always been a flourishing business centre, and its Creek has played a major role in this respect. The Creek has constantly been an important and safe harbour for small and medium-size ships which sail to the ports of the Arabian Gulf region, the countries of the Indian Subcontinent, and East Africa, loaded with different goods which are re-exported to these various regions.

Dubai is known as the City of Merchants due to its deep-rooted trading traditions which are based on the freedom of practicing business, in addition to being a crucial business link between the East and the West.

The Three Pillars of Dubai's Trading Success

Dubai has acquired this prominent global position for several key reasons, which can be summarized as follows:

• A Strategic Location: It occupies a highly competitive location in the middle of the UAE coast, stretching along 400 miles. Its distinct location in the south-western part of the Arabian Gulf enables it to play an active trading role in linking maritime lines and transporting goods seamlessly between the East and West.
• Free Economic Policy: Dubai has strengthened its distinguished location by pursuing a free and balanced economic policy. This has earned it a stellar reputation in the international commercial community, encouraging national and foreign capital to enter into successful investment ventures across commercial, industrial, and service fields.
• World-Class Infrastructure: Dubai has boosted the importance of its strategic location and substantiated its free economic policy by setting up complete infrastructural projects along with other state-of-the-art utilities. Operating these facilities with high efficiency has had an immediate, positive impact on economic growth rates and living standards.

Economic Diversification and the African Partnership

The economy of the Emirate is based on two main activities: non-oil trade and oil production. Dubai has witnessed a rapid growth of its trade and industrial activities over the last three decades, cementing its status as the most important centre for imports, exports, and re-exports in the region.

During the last two decades, Dubai has embarked on a strategy aimed at strengthening its industrial sector to diversify its revenue base. It has established heavy industrial projects in the Jebel Ali Free Zone, alongside privately-owned medium and small manufacturing industries. This has achieved self-sufficiency in some commodities, allowing the surplus to be exported to overseas markets.

Africa, a traditional trade partner of the United Arab Emirates, has once again emerged as a massively strong market. Trade between Africa and Dubai has been registering steady, rapid growth in recent years as more African countries adopt free trade policies and realize the importance of Dubai as an international trading hub.

South Africa, for example, has emerged as a trustworthy, high-volume business partner. Similarly, countries in East Africa—namely Kenya, Uganda, and Tanzania—are fast emerging as potential mega-markets for Dubai. Furthermore, several other African nations have started sourcing their requirements for consumer and capital goods directly from Dubai; these include Libya, Egypt, Eritrea, Congo, Zimbabwe, Senegal, Botswana, Mozambique, Rwanda, Ethiopia, Mali, and Nigeria, to name a few.

Abdul Rahman G. Al Mutaiwee

Former Director-General Dubai Chamber of Commerce and Industry

Did You Know?

• The City of Merchants: Dubai earned this title due to its deep-rooted trading traditions and historically open, free-trade policies linking the East and West.
• The Historic Creek: Long before modern mega-ports were built, Dubai Creek served as the primary safe harbor for traditional dhows sailing to East Africa and the Indian Subcontinent.
• Industrial Diversification: To systematically reduce its dependency on oil, Dubai established the Jebel Ali Free Zone, which has become one of the largest manufacturing and re-export hubs in the world.
• Africa's Trading Hub: Dubai acts as the primary gateway for African nations like South Africa, Kenya, and Nigeria to efficiently source consumer electronics, machinery, and capital goods from global markets.