UAE ranks second amongst international commodity buying and selling hubs – Information

Rating underscores the nation’s resilience to headwinds

Learn extra…

The UAE ranks second amongst commodity buying and selling hubs worldwide, behind the USA and forward of Switzerland, reinforcing its main place as a thriving enterprise powerhouse.

The UAE’s continued prominence among the many high international commodity buying and selling hubs underscores the nation’s resilience to headwinds alongside the formidable imaginative and prescient of its management that’s driving the nation’s development trajectory, mentioned Feryal Ahmadi, chief working officer of Dubai Multi Commodities Centre (DMCC).

The UAE’s commodities market is projected to succeed in a nominal worth of $123.8 billion by 2024, and $141 billion by 2028 at an estimated annual development fee of three.31 per cent, in keeping with Statista. In 2024, the common value per contract within the commodities market is $0.01.

“The strategic location, world-class infrastructure and business-friendly insurance policies in Dubai present us with a innovative that continues to draw companies and traders from all over the world,” mentioned Ahmadi.

The DMCC Commodity Commerce Index, offered within the Way forward for Commerce 2024 report, evaluates ten main buying and selling hubs by analysing three essential features of commodity commerce throughout ten particular sub-indicators.

DMCC mentioned these indicators seize the essence of locational benefits, commodity wealth throughout commodities like espresso, grains and gold, monetary providers and logistics infrastructure, and institutional energy, providing a holistic view of every hub’s function in international commerce. The information for these indicators are sourced from international establishments just like the World Financial institution and the United Nations.

“The insights gathered from the index in our report will information our path in shaping the way forward for commerce, driving sustainable development, and fostering significant partnerships that reinforce DMCC’s efforts to domesticate an setting ripe for companies to succeed,” mentioned Ahmadi.

The UAE continued to dominate within the class of commodity endowment components (77 per cent) nicely forward of all the opposite buying and selling hubs, pushed by its oil provide. The nation additionally scored nicely within the institutional components (66 per cent), transferring up one place from the earlier iteration to come back fourth, largely attributed to its engaging tax charges and sturdy commerce logistics infrastructure. The Index indicated alternatives for additional collaboration and enhancement of commerce relations to spice up the rating for locational and buying and selling accomplice components.

In 2024, the US leads the Index with a rating of 59 per cent, reflecting sturdy efficiency throughout all classes, whereas its highest marks come from commodity components and institutional energy. Notably, Switzerland has ascended to the highest three hubs for the primary time with a rating of 46 per cent coming in sturdy on locational benefits and institutional components, signalling its emergence as a major participant within the international commodities commerce panorama. Singapore moved up three locations to rank fourth with a rating of 44 per cent, whereas Hong Kong climbed up one place to fifth place with a rating of 41 per cent.

The UK 38 (per cent) witnessed the most important falls within the rating. The shift within the headquarters of oil firm Shell from the Netherlands to the UK induced a giant dent within the Netherlands’ locational rating whereas the impact of Brexit and the rise in tariffs imposed by buying and selling companions impacted the UK’s rating. The comparatively excessive company tax additional weakens the UK’s rating.

The underside three performers remained unchanged, that are China (34 per cent), South Africa (18 per cent) and Nigeria (10 per cent), whereas wealthy in pure sources, they lag on account of weaker institutional assist and locational disadvantages. Eight of the hubs noticed a decline of their Index scores because the hole between the highest and backside performers continued to widen, underscoring the foremost affect of geopolitical tensions and macroeconomic situations on international commerce.