Foreign trade in Dubai

Foreign trade in Dubai is increasing day by day. It includes free zones, customs warehouses. The export rate went up by 70%, while the re-export rate went up by 73.5%. On the other hand , the import's rate went up by 49.7 %.

Dubai World's Statistics Department stated that foreign trade, other than free zones and customs warehouses, grew up to Dh143.8 billion (about $39.2 billion) during the first quarter of 2008, against Dh91.53 billion (about $24.9 billion) for the same period in 2007, an increase of Dh52.3 billion (about $14.2 billion).

The chairman of Dubai World Statistics Department, Sultan Ahmad Bin Sulayem, announced that the figures released by the Dubai World Statistics Department underscore the buoyant commercial growth of the emirate, reinforcing Dubai's reputation as a major commercial hub. The growth is pushed forward by the government's continuous efforts to upgrade the existing modern infrastructure of ports, airports and land transportation network, connecting Dubai to the world.

The increasing price of oil is playing a very important role in the field of foreign trade in Dubai. This leads to the increase in government revenues and the consequent public spending on development projects. Construction boom and the tourist and commercial development are key roles in this matter.

The robust growth in Dubai's foreign trade will continue in the three remaining quarters of the current year, the acting Department Head, Statistics Department, Dubai World announced to reporters.

Dubai's exports to various countries showed remarkable progress during this period. India, China and Switzerland came the first countries to export from Dubai.

The oil and gas sector provides around a third of the UAE's Gross National Product. The Abu Dhabi National Oil Company, ADNOC, supervises policy in Abu Dhabi, under the guidance of the Supreme Petroleum Council. Production is handled through joint ventures with consortia of international companies,. ADNOC also owns, on behalf of Government, all of Abu Dhabi's gas reserves. Oil production is around 2 million barrels a day. Gas is increasingly important, both for export, and for meeting local demand, from domestic and industrial consumers and from power generation and water desalination plants. Dubai produces around 240,000 barrels a day of oil and substantial quantities of gas from offshore fields, with a major condensate field onshore, while Saharjah has smaller oil and gas fields.

As for natural gas, the proven recoverable reserves are estimated currently at 5.8 billion cubic meters or 4 percent of the world total. This means that the UAE possesses the third largest natural gas reserves in the region and the fourth largest in the world. At the current rate of utilization, and excluding any new discoveries, these reserves will last for over 150 years. The UA E 's oil production is limited by quotas agreed within the framework of OPE C to 2 million barrels per day (mbd). Production capacity,

The UAE plays a vital role in achieving stability in international oil markets through its positive and balanced attitude within OPEC. Abu Dhabi is by far the biggest oil producer in the UAE, controlling more than 85 percent of the UAE's total oil output capacity and over 90 percent of its crude reserves

Oil companies from Japan, France, Britain and other countries own up to 40 percent of the energy sector in Abu Dhabi, the only Gulf oil producer to have retained foreign partners on a production-sharing basis.

Dolphin Project

The Dolphin project was launched in March 1999 following an announcement by the UAE and Qatar of plans for a joint venture aimed at transporting gas from Qatar's huge reserves to industrial consumers in the UAE, Oman and other countries. The Dubai Government also joined the multi-billion dollar Dolphin initiative with the signing of a memorandum with the UOG where by the Dubai Supply Authority (DSA) agreed to purchase its requirements for Qatari gas from Dolphin

Dubai's oil reserves have reduced over the past decade and are now expected to be exhausted within 20 years. The state-owned Dubai Natural Gas Company (DUGAS) is responsible for processing natural gas produced in Dubai's offshore oil fields as well as the gas piped from Sharjah.

Sharjah owns 5 percent of the UAE's gas reserves, mostly non-associated gas which is being utilized domestically. The Sharjah Liquefied Gas Company (SHALCO) was formed to increase exports of liquefied natural gas (LNG).

Ras al-Khaimah's reserves are estimated at 400 million barrels of oil and condensate and 1,200 bn cfd of natural gas.

In the UAE there are six refineries operational at present and the existing refining capacity in the region is estimated to be around 800,000 tones

The Emirates Petroleum Products Company (EPPCO) condensate and light crude refinery in Jebel Ali was commissioned in May 1999. As part of an ambitious plan to expand its energy sector the UAE is planning to make a major investment in petrochemicals in the next few years. Work on the Borouge gas-based down stream complex is on schedule to start production late in the year 2001

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