The UAE Continues as One of the Top Three Global Commodity Trading Hubs

Photo : Dubai Government Media Office
 

The United Arab Emirates (UAE) has solidified its position as one of the world's top three commodity trading hubs, maintaining its second-place ranking in the Commodity Trade Index, as outlined in the Future of Trade 2024 report by DMCC (Dubai Multi Commodities Centre).

The DMCC Commodity Trade Index 2024 evaluates ten major trading hubs based on ten specific sub-indicators, including locational advantages, commodity wealth, financial services, logistics infrastructure, and institutional strength. Data for these indicators are sourced from esteemed global institutions like the World Bank and the United Nations.

In the face of increased trade regionalisation and geopolitical tensions, trade hubs that can leverage their political neutrality, geographic position, and trade infrastructure have gained competitive advantages.

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The UAE excelled in commodity endowment factors, driven by its natural supply of oil, and demonstrated strong institutional factors, attributed to its attractive tax rates and robust trade logistics infrastructure. The report highlights opportunities for enhancing trade relations to further boost the UAE's competitiveness.

Feryal Ahmadi, Chief Operating Officer of DMCC, emphasized the UAE's resilience and growth trajectory, driven by its strategic location, world-class infrastructure, and business-friendly policies. The insights from the Commodity Trade Index will guide efforts to shape the future of commerce and foster partnerships conducive to business success.

In the Index, the United States leads with a score of 59%, followed by Switzerland, which entered the top three hubs for the first time. Singapore and Hong Kong also demonstrated improvements in their rankings.

The Netherlands and the United Kingdom witnessed declines, attributed to factors such as the shift in Shell's headquarters and Brexit implications.

China, South Africa, and Nigeria remain at the bottom due to weaker institutional support and locational disadvantages.

Overall, geopolitical tensions and macroeconomic conditions continue to impact global trade dynamics, underscoring the importance of insights provided by reports like the Future of Trade series.

The Future of Trade 2024 report examines transformative trends shaping global trade, including regionalisation, supply chain restructuring, and the rise of digital services trade and AI adoption.

Through detailed research and analysis, the report offers actionable intelligence to stakeholders navigating the evolving landscape of global trade.