Import Summery Report · PDF fileThis Report identifies the UAE’s non-oil imports over...

Import Summery ReportUnited Arab Emirates

2

DisclaimerSaudi Export Development Authority “SAUDI EXPORTS” have prepared the Import Summery Reports as a part of its continuous publication on countries. The purpose of this report is to provide a high-level view of Saudi Arabia exports to the countries, based on available public information. Its analysis, perceptions, and anticipations are subject to personal judgment. “SAUDI EXPORTS” is not liable for any consequences caused by the understanding and interpretation of any part of this report. In general, the information in the report present a broad view of the imports environment of this country. Saudi exporters are encouraged to carry out further studies to be updated and more informed on potential opportunities that might be identified in this report.Please note that available data on UAE’s imports from the Kingdom of Saudi Arabia may not match those on KSA’s exports to the UAE, due to logistics and insurance costs incurred, as well as classification concept and details, coverage, value estimation, and others. Furthermore, this Report was prepared based on data available on the United Nations Commodity Trade Statistics Database (UN Comtrade) as of the first of April, 2017.

ContentsDisclaimer

Overview of UAE Imports

Non-Oil Imports

Overview of UAE Import Sectors

Food Products

Building Materials

Durable Consumer Goods

Metals and Jewelry

Heavy Machinery and Electronics

UAE Date Imports

Key Import Documents

Checklist of Key Import Documents – The United Arab Emirates

Estimated Cost of Shipping from the Kingdom of Saudi Arabiato the UAE

1.

2.

3.

3.1

3.2

3.3

3.4

3.5

4.

5.

5.1

5.2

2

4

4

6

6

7

9

10

12

13

14

14

15

3

• The GDP of the UAE grew by a Compound Annual Growth Rate of 5% between 2010 and 2015 (according to 2005 prices in US dollars), while imports increased by an average of 7% during the same period of time.

• In 2015, UAE imports of metals and jewels, heavy machinery and electronics, automobiles and building materials accounted for more than 45% of its total imports, constituting the most important four sectors of non-oil imports in the UAE, which have been increased by about 8% since 2011.

• The Kingdom of Saudi Arabia currently contributes only 1% of the UAE’s non-oil imports, while being a significant supplier of food products to the UAE, with nearly 5% of total UAE imports, at an estimated value of approximately SAR 3 billion.

This Report identifies the UAE’s non-oil imports over the last five years, as well as KSA’s share therein. It also highlights opportunities for the Kingdom of Saudi Arabia in specific sectors, such as metals and jewelry, heavy machinery and electronics, automobiles and building materials. However, it does not include any services imported by the UAE.

For comments and queries please contact:

Kingdom of Saudi ArabiaSaudi ExportsSaudi Export Development AuthorityTelephone: +966 11 874 2000Fax: +966 11 874 2002E-mail:[email protected]

P.O. Box 75169, Riyadh 11578www.SaudiExports.sa

SUMMARY

4

in billion SAR

in billion SAR

The United Arab Emirates is a federation of seven emirates, located in the east of the Arabian Peninsula in southwest Asia. It overlooks the Arabian Gulf to the south, and shares common maritime borders with the State of Qatar to the northwest, as well as land and maritime borders with the Kingdom of Saudi Arabia to the west and the Sultanate of Oman to the southeast.The import market has seen rapid growth as a result of the increase in commodity prices worldwide. Hence, the UAE has a number of positive features including its free market economy as well as its strategic geographical location.Figure 1 shows the distribution of UAE imports between 2011 and 2015. Over this period of time, total imports increased by 8%, with imports increasing across all sectors between 2011 and 2014. In 2015, oil and petrochemical imports were affected by recession: oil imports decreased by 9% during 2011-2015, and the share of petrochemicals in imports decreased by 5%.

UAE imports mainly consist of metals and jewelry, heavy machinery and electronics, automobiles and building materials.

Figure 1 also shows the distribution of main countries exporting to the UAE, with China contributing 8% of total UAE imports, followed by the United States and India with 7% and 6% respectively.Whereas the Kingdom of Saudi Arabia’s contribution accounts for 1% of total UAE imports.

* Includes durable goods, food products, packaging, textiles, medicines and others.

1The United Nations Commodity Trade Statistics Database (UN Comtrade)

1. Overview of UAE Imports

2. Non-Oil Imports

Figure 2: Non-oil products imported by the UAE 2

*Includes durable goods, food products, packaging, textiles, building materials, medicines and others.

Figure 1: Overview of UAE imports1

2011 2012 2013 2014 2015

8 %

757

36 36

913

38 2943

1,045 1,041

9 30 29 632

791

9791,106 1,120

1,076__

___

Other imports*Total oil imports Petrochemicals

Total imports SAR 1,076 billion

8%

68%

7%

6%

4%

4%

2%1%

8% China

7% USA

6% India

4% Germany

4% Japan

2% United Kingdom

1% KSA

68% Others

1,039

Metals and jewelry Automobiles Building materials Other imports*Heavy machinery and electronics

403

412431

324402

91

66

95

124 126

115

134

205 230127

261

250 258 211 174

73

93

8085

196

782

9491,077 1,0701,087

2011 2012 2013 2014 2015

8 %

5

Figure 3 provides an analysis of the UAE’s non-oil imports in 2015 by exporting countries. The figure shows that the main exporting countries are China, the United States and India, with 8%, 7% and 6% respectively, followed by Germany and Japan. Whereas the Kingdom of Saudi Arabia’s share of the UAE’s non-oil imports accounted for only 1% in 2015.

Figure 3: UAE’s non-oil imports in 2015 – by country 1


8%

7%

6%

4%

4%

2%

1%

68%

8% China

7% USA

6% India

4% Germany

4% Japan

2% United Kingdom

1% KSA

68% Others


in billion SAR

Non-oil imports from Saudi Arabia decreased by 1% during the 2011-2015 period. In this respect, chemicals and polymers accounted for 10% of total non-oil imports for a value of SAR 3 billion. Exports of Saudi goods to the UAE also declined by SAR 3 billion compared to the previous year.

Figure 4:UAE’s non-oil imports from the Kingdom of Saudi Arabia1

2011 2012 2013 2014 2015

-1 %

27 9 28 26

3 3 34 4

3033

3532

29

Redu

ced

impo

rts v

olum

e in

201

5

OtherChemicals and polymers

Total imports SAR 29 billion

10%

90%

10% Chemicals and polymers

90% Others

31

6

3. Overview of UAE Import Sectors

in billion SAR

UAE food products imports reached SAR 59 billion in 2015, amounting to approximately 6% of total non-oil imports. Fruits and vegetables constitute 25% of total food products, followed by meat products and then cereals, with 16% and 12% respectively. Since 2011, food imports have increased by 5% during the 2011-2015 period. All products have witnessed an increase, except for meat products which have decreased slightly.

3.1 Food Products

*Includes baked goods, confectionery, dairy products, cooking oil. fats, spices, and others.

Figure 5: UAE food products imports1

2011 2012 2013 2014 2015

5%

Anal

ysis

of 2

015

impo

rts

Cereals

Others*

Fruits and vegetables

Meat products


16%

48%

25%

12%

25% Fruits and vegetables

16% Meat products

12% Cereals

48% Others*

28

59

14 14

68

33 38

77 7

12

62

5

31

10

79

9 9

52

8

25

10

7

50

Figure 6 shows the distribution of UAE food products imports by exporting country. The figure shows that India is the largest exporter, contributing about one quarter of imports. It is followed by the United States and Brazil, with 8% and 6% respectively, and then by the Kingdom of Saudi Arabia with 5%.

Figure 6 : Distribution of UAE food products imports in 2015 – by country


13%

6%

8%

5%

5%

4%

59%

13% India

8% USA

6% Brazil

5% KSA

5% Australia

4% Canada

59% Others

7


in billion SAR

As shown in Figure 7, KSA’s food product exports to UAE reached SAR 3 billion in 2015. Dairy products accounted for 40% of total exports, followed by baked goods and confectionery, as well as juices and beverages, with 17% and 14% respectively. UAE food products imports from the Kingdom of Saudi Arabia have increased by 7% annually since 2011.

*Includes fruits, vegetables, meat products, cereals, cooking oils, spices, and others.

Figure 7: UAE food products imports from the Kingdom of Saudi Arabia

2011 2012 2013 2014 2015

7%

Anal

ysis

of 2

015

impo

rts

CerealsDairy products Baked goods and confectionary


17%

29%40%

14%

40% Dairy products

17% Baked goods and confection ery

14% Juices and beverages

29% Others*

3,0

1,0 1,2

2,9

299368

428

992

271

765

377

459 511

5322,3

2,7

275

786

306

2,3

in billion SAR

UAE building materials imports, accounting for 6% of total imports, declined 9% annually from SAR 73 billion in 2011 to SAR 66 billion in 2015. Metal rods and parts witnessed a significant drop in demand compared to other products. Metal rods and parts constitute 26% of total UAE building materials imports, followed by electric wires and equipment with 24%.

3.2 Building Materials

*Includes cement, plaster, bricks, paints, dyes, pipes, tubes, cardboard, etc.

Figure 8 : UAE building materials imports 1

2011 2012 2013 2014 2015

-9 %

Anal

ysis

of 2

015

impo

rts

Metal sheets

Others*

Metal rods and parts

Electric wires and equipment


24%

33%

26%

17%

26% Metal rods and parts

24% Electric wires and equipment

17% Metal sheets

33% Others*

22

17

16

66

26

95

3029

1919

23

91

15

32

25

20 2020

93

11 11

27

21

15

73

8


Figure 9 provides an analysis of UAE building materials imports by exporting country. The figure shows that China ranks first in exporting building materials, with 17% of total imports in this sector. It is followed by South Korea and India, both with 7%. Whereas the Kingdom of Saudi Arabia’s share of the UAE’s total imports accounted for 4%.

Figure 9 : Distribution of UAE building materials imports in 2015 – by country 1


17%

7%

7%

4%

6%

5%

5%

49%

17% China

7% South Korea

7% India

6% Germany

5% USA

5% Turkey

4% KSA

49% Others

in billion SAR

In 2015, the UAE imported SAR 2.8 billion worth of building materials from the Kingdom of Saudi Arabia. However, these imports declined during the 2011-2015 period, leading to an annual decrease rate of 9%.

Figure 10: UAE building materials imports from the Kingdom of Saudi Arabia 1

*Includes cement, plaster, bricks, paints, dyes, pipes, tubes, cardboard, etc.

2011 2012 2013 2014 2015

-9 %

Anal

ysis

of 2

015

impo

rts

Pipes

Others*

Metal rods and parts

Electric wires and equipment

Total imports SAR 2.8 billion

33%

23%

33%

12%

33% Metal rods and parts

33% Electric wires and equipment

12% Metal sheets

23% Others*

647

927

925

2,8

982

2,3673

615353

179

1,496

3,1

788

715

1,202

1,008 662512

3,7

195

338

846

1,947

1,103

4,0

9

in billion SAR

In 2015, UAE durable consumer goods imports reached SAR 32 billion. Cleaning products were the most imported products for the year with more than 30%, followed by consumer electronics. Over the past five years, durable consumer goods imports have increased by 5% annually. Note that imports of all products have increased slightly during the 2011-2015 period.

3.3 Durable Consumer Goods

*Includes laundry detergents, soaps, sports equipment, and others.

Figure 11: UAE Durable Consumer Goods Imports1

2011 2012 2013 2014 2015

5%

Anal

ysis

of 2

015

impo

rts

Furniture

Others*

Cleaning products

Consumer electronics


18%

38%

31%

13%

31% Cleaning products

18% Consumer electronics

13% Furniture

38% Others*

12

32

15 10

52

1922

4

4

13

45

55

18

12

98 9

6

44

4

9

8

5

27

Figure 12 provides an analysis of UAE durable consumer goods imports by exporting country. The figure shows that the UAE imports durable consumer goods from a variety of exporting countries, with China coming in first with 21%, followed by Italy, Germany, and France with 7% each. Whereas the Kingdom of Saudi Arabia’s share of UAE durable consumer goods imports accounted for 6%.

Figure 12: Distribution of UAE durable consumer goods imports in 2015 – by country


21%

7%

7%

7%

6%6%1%

45%

21% China

7% Italy

7% Germany

7% France

6% USA

6% KSA

1% Japan

59% Others

10

in billion SAR

As shown in Figure 13, the Kingdom of Saudi Arabia exported approximately SAR 2 Billion worth of durable consumer goods to the UAE in 2015, representing an annual increase of 8% since 2011. Laundry detergents and soaps are considered the most imported products from KSA, accounting for 45% of the total durable consumer goods imports, followed by cleaning products and consumer electronics, with 34% and 12% respectively.

*Includes furniture, sports equipment, and others.Figure 13: UAE durable consumer goods imports from the Kingdom of Saudi Arabia 1

2011 2012 2013 2014 2015

8%

Anal

ysis

of 2

015

impo

rts

Consumer electronics

Others*

Laundry detergents and soaps

Cleaning products


9%

12%45%

34%

45% Laundry detergents and soaps

34% Cleaning products

12% Consumer electronics

9% Others*

1751,9

1,5

704 854

93

110

245

236

583

1,3

265

287

82

566

238421

447646

1,1389

77

496

418

1,4

in billion SAR

Metals and jewelry accounted for 16% of total non-oil imports to the UAE in 2015. During the 2011-2015 period, UAE metals and jewelry imports decreased by 3% annually.Figure 14 shows a breakdown of UAE metals and jewelry imports. In this respect, total imports amounted to SAR 174 billion in 2015, of which the largest share was from precious metals with 56%, followed by precious stones and jewelry, with 26% and 16% respectively.

*Include watches, and others.Figure 14: UAE metals and jewelry imports 1

2011 2012 2013 2014 2015

8 %

24

3536

38

28

3

6 6

49

4

107 161 158 116 98

61

49 58

5144

196

250 250

211

174

Anal

ysis

of 2

015

Impo

rts

Jewelry

Others*

Precious metals

Precious stones


56%

16%

2%

26%

56% Precious metals

26% Precious stones

16% Jewelry

2% Others

3.4 Metals and Jewelry

11

Figure 15 provides an analysis of UAE metals and jewelry imports, by exporting countries. It shows that India is the largest supplier of metals and jewelry to the UAE, contributing 23% of total non-oil imports, followed by Switzerland and Hong Kong, with 8% and 7% respectively. Whereas the Kingdom of Saudi Arabia’s share of the UAE’s total imports accounted for only 1% in 2015.

Figure 15: Distribution of UAE metals and jewelry imports in 2015 – by country


23% India

8% Switzerland

7% Hong Kong

7% Belgium

5% Mali

4% Malaysia

1% KSA

45% Others

23%

8%

7%

7%5%4%1%

45%

in billion SAR

UAE metals and jewelry imports from the Kingdom of Saudi Arabia decreased slightly by 2% annually during the 2011-2015 period.

*Includes precious stones, and others.Figure 16: Distribution of UAE metals and jewelry imports from the Kingdom of Saudi Arabia 1

2011 2012 2013 2014 2015

-2 %

133 239 413 536

736

869

Anal

ysis

of 2

015

Impo

rts

Jewelry Others*Precious metals


51%

0%

49%

51% Precious metals

49% Jewelry

0% Others779

1,1

331

849 614 506

1,11,0 1,0

12

UAE heavy machinery and electronics imports amounted to SAR 127 billion in 2015, which is equivalent to about 12% of total non-oil imports. Imports also increased by 10% during the 2011-2015 period, as shown in Figure 17.In 2015, electronics constituted 43% of the total imports out of the heavy equipment and electronics category, followed by mechanical engines and spare parts, as well as tools, with 19% and 7% respectively.

3.5 Heavy Machinery and Electronics

in billion SAR

*Includes air and water pumps, electric batteries, inductors, and others.

Figure 17 : UAE heavy machinery and electronics imports 1

2011 2012 2013 2014 2015

10 %

Anal

ysis

of 2

015

Impo

rts

Tools

Others*

Electronics

Mechanical engines and spare parts


19%

32%

43%

7%

43% Electronics

19% Mechanic al engines and spare parts

7% Tools

32% Others

8

40

54

24

127

63

154

32

261

1356

10

134

230

3013

60

106

26

205

1134

2516

85

Figure 18 provides an analysis of UAE heavy machinery and electronics imports by exporting countries. It shows that China is the largest exporter, contributing 30% of total imports in 2015, followed by the United States, South Korea, and Germany, with 19%, 6% and 5% respectively. Whereas the Kingdom of Saudi Arabia’s share of the UAE’s total imports accounted for less than 1% in 2015.

Figure 18: Distribution of UAE heavy machinery and electronics imports in 2015 – by country2


30%

4%<0%

5%19%

6%

30%

30% China

19% USA

6% South Korea

5% Germany

5% Vietnam

4% Italy

<0% KSA

30% Others


13

4. UAE Date ImportsThis section is highlighted given the importance of the Dates Sector and the Kingdom of Saudi Arabia’s relative advantage in this regard. According to GCC agreements, the UAE exempts customs fees on imported products (falling within Category 080410: Fresh or Dried Dates).

As shown in Figure 20, UAE date imports have increased at an annual growth rate of 3% during the 2012-2015 period, amounting to SAR 430 million in 2015.

In million SAR

2012 20122013 20132015 2015

Free Zones

Volume (Million tons)

Compound Annual Growth Rate

Sultanate of Oman Rest of the world

Iraq Value (SAR million)KSA Iran

57%

224

10%11%

12%

3%2%8% 8%

2%5%

66%

242

389382

420430

16%20%

2014 2014

51%

248

39%

204

3%3% 3%

23%28%

19%

0%10%

3%

-4%

The Figure also shows the share of key exporters by value. The Kingdom of Saudi Arabia ranks second in terms of revenue from dates, preceded by Iraq. Furthermore, the top 5 countries account for more than 90% of the UAE’s total date imports.

Figure 20: UAE date imports and share of main exporters (By value and percentage of acquisition)1

In 2015, UAE heavy machinery and electronics imports amounted to SAR 179 million. In this respect, the value of electric batteries and inductors imported from the Kingdom of Saudi Arabia amounted to SAR 105 million, making them the most imported products from KSA within the heavy machinery and electronics category.

Figure 19: UAE heavy machinery and electronics imports from the Kingdom of Saudi Arabia1

*Includes mechanical engines, spare parts, electronics, etc.

in million SAR

2011 2012 2013 2014 2015

-5 %

Anal

ysis

of 2

015

impo

rts

Tools

Others*

Electric batteries and inductors

Air pumps

Total imports SAR 179 million

10%

25%

59%

7%

59% Electric batteries and inductors

10% Air pumps

7% Tools

25% Others

13

44

105

17

179

38

73

15246

15

98

180

212726

46

82

10

165

18

54

16

223

135

14

14

987654321Presented toObtained fromDocument#

CustomsRelevant AuthoritiesCertificate of Origin1

CustomsExporterCommercial Invoice2

CustomsExporterPacking Checklist3

CustomsCarrierShipping Policy/Statement4

CustomsCarrierDelivery Order5

CustomsRelevant AuthoritiesCommercial License6

CustomsRelevant AuthoritiesStatistical Statement7

5.1Checklist of Key Import Documents – The United Arab Emirates

Note:1-Building Materials, 2-Chemicals and Polymers, 3-Food Products, 4-Packaging, 5-Durable Consumer Goods, 6-Heavy Machinery and Electronics, 7-Precious Metals and Jewelry, 8-Medicines, 9-Textiles

5. Key Import Documents

5.2 Estimated Cost of Shipping from the Kingdom of Saudi Arabiato the UAECommercial transactions between Arab countries, including the United Arab Emirates and the Kingdom of Saudi Arabia, are mainly carried out via land ports. These land ports play an important role in consolidating trade relations among Arab member states. There is only one land border crossing between the UAE and KSA, as shown in the table below:

Information on Land Ports between the UAE and KSA :Table 4

Overseeing authority in KSAOverseeing authority in the UAELand port as known in KSALand ports as known in the UAE

Saudi CustomsThe Abu Dhabi General

Administration ofCustoms

Batha AlAl Ghuwaifat

15

The table below provides an overview of approximate shipping costs which Saudi exporters may be bound to bear when transporting goods to the UAE via land ports.

Major domestic markets

Chemicals and polymersFood productsPackaging

materialsDurable consumer

goodsTextilesDeparture Point in KSA

Dubai4,500 -5,5005,500 -6,5004,500-5,5004,500-5,5004,500-5,500

Abu Dhabi4,500 -5,5005,500 -6,5004,500-5,5004,500-5,5004,500-5,500

Sharjah4,500 -5,5005,500 -6,5004,500-5,5004,500-5,5004,500-5,500

Ras Al- Khaimah5,500 -6,5006,500 -7,5005,500-6,5005,500-6,5005,500-6,500

Dubai3,500 -4,5004,500 -5,5003,500-4,5003,500-4,5003,500-4,500

Abu Dhabi3,500 -4,5004,500 -5,5003,500-4,5003,500-4,5003,500-4,500

Sharjah3,500 -4,5004,500 -5,5003,500-4,5003,500-4,5003,500-4,500

Ras Al- Khaimah4,500 -5,5005,500 -6,5004,500-5,5004,500-5,5004,500-5,500

Dubai5,500 -6,5006,500 -7,5005,500-6,5005,500-6,5005,500-6,500

Abu Dhabi5,500 -6,5006,500 -7,5005,500-6,5005,500-6,5005,500-6,500

Sharjah5,500 -6,5006,500 -7,5005,500-6,5005,500-6,5005,500-6,500

Ras Al- Khaimah6,500 -7,5007,500 -8,5006,500-7,5006,500-7,5006,500-7,500

Riyadh

Dammam

Jeddah

Overview of Shipment Transfer Costs

- Cost Assumptions1- The selected shipping method is by land.2- Respective costs were estimated according to available industries mentioned in international shipping price lists. 3- A full container load was selected.4- No additional fees (risk or insurance) were selected.5- Transport costs represent an approximate estimate of shipping costs.

Saudi Exports recommends that exporters re-confirm shipping quotes in accordance with global shipping rates.http://www.worldfreightrates.com/en/freight

Please feel free to review the UAE Import Procedures Guide, available on the Saudi Export Development Authority website, through the following link: https://www.saudiexports.sa/ar/Export-Information/Documents/UAE%20Guide%20-%20Ar%202016110

Import Summery Report · PDF fileThis Report identifies the UAE’s non-oil imports over...

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Transcript of Import Summery Report · PDF fileThis Report identifies the UAE’s non-oil imports over...