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Trade Between Dubai, Israel Reaches $272 Million in Five Months

FILE PHOTO: Emirati and Israeli flags fly upon the arrival of Israeli and US delegates at Abu Dhabi International Airport, in Abu Dhabi, United Arab Emirates August 31, 2020. REUTERS/Christopher Pike
FILE PHOTO: Emirati and Israeli flags fly upon the arrival of Israeli and US delegates at Abu Dhabi International Airport, in Abu Dhabi, United Arab Emirates August 31, 2020. REUTERS/Christopher Pike
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Trade Between Dubai, Israel Reaches $272 Million in Five Months

FILE PHOTO: Emirati and Israeli flags fly upon the arrival of Israeli and US delegates at Abu Dhabi International Airport, in Abu Dhabi, United Arab Emirates August 31, 2020. REUTERS/Christopher Pike
FILE PHOTO: Emirati and Israeli flags fly upon the arrival of Israeli and US delegates at Abu Dhabi International Airport, in Abu Dhabi, United Arab Emirates August 31, 2020. REUTERS/Christopher Pike

Dubai's trade with Israel in the last five months (Sep 2020 -Jan 2021) reached a value of AED1 billion ($272 million) and a volume of 6.217k tonnes, according to Dubai Customs statistics.

Of this, imports were valued at AED325 million (718 tonnes), exports at AED607million (5.4k tonnes), and transit trade at AED98.7million (52.4 tonnes).

In the light of this exceptional growth, Sultan bin Sulayem, DP World Group Chairman & CEO and Chairman of Dubai's Ports, Customs & Free Zone Corporation believes opening new markets and stimulating mutual trade between Dubai and Israel will encourage companies to increase production, leading to greater economic growth and more job creation, state news agency WAM reported.

"The expansion of trade and investment between the two sides will benefit not only the business communities in the UAE and Israel, but also other stakeholders and business communities in the Middle East. This growth supports the vision of Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, to forge closer cooperation and cross border partnerships with markets around the world," said Bin Sulayem.

DP World signed an agreement with Israel’s Leumi Bank last September to facilitate trade and logistics services between the two sides, which will promote trade flows in the region.

DP World also signed a series of cooperation agreements on cargo, port and free zone development with Israeli company Dovertower, as part of which they are launching a joint bid to privatise Haifa port. The agreement will enable DP World to contribute to facilitating trade between private businesses of the two countries. These agreements will also open a window for Drydocks World-Dubai to develop the Israeli dry docks and handle refurbishment projects.

Israel has expressed its interest in leveraging Jebel Ali Port as a re-export hub for Israeli products to enable it to easily access neighboring fast-growing markets such as India, Pakistan, Bangladesh and Sri Lanka, which have a combined population of more than 2 billion.

Ahmed Mahboob Musabih, Director-General of Dubai Customs, stated that the volume of Dubai’s seaborne trade with Israel amounted to 5.7k tonnes (AED82.8 million), while airborne trade reached 423 kg (AED948.6 million).

Dubai’s main imports from Israel include vegetables and fruits, diamonds and flat screens, hi-tech devices, and medical and mechanical devices, while exports include diamonds, smart phones, engine spare parts, perfumes and lubricants.

Ahmed Mahboob Musabih said that Dubai and Israel can both generate new growth opportunities by virtue of possessing exceptional competitive advantages that place them in a good position to promote win-win cooperation between each other’s business communities.

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Saudi Business Sector Achieves Trillions in Revenue Thanks to Government Incentives

King Abdullah Financial District (KAFD) in Riyadh (SPA)
King Abdullah Financial District (KAFD) in Riyadh (SPA)
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Saudi Business Sector Achieves Trillions in Revenue Thanks to Government Incentives

King Abdullah Financial District (KAFD) in Riyadh (SPA)
King Abdullah Financial District (KAFD) in Riyadh (SPA)

Government incentives have played a pivotal role in enabling Saudi Arabia’s business sector to achieve operational revenues of SAR 5.3 trillion ($1.4 trillion), with operational expenditures reaching SAR 2.2 trillion ($586 billion).

According to the 2023 Comprehensive Economic Survey conducted by the General Authority for Statistics (GASTAT), employee compensation totaled SAR 544.7 billion ($145 billion), while total fixed capital formation amounted to SAR 867.8 billion ($231 billion).

Legal and commercial expert Dr. Osama Al-Obaidi explained to Asharq Al-Awsat that the increase in operational revenues is largely due to government initiatives aimed at enhancing the private sector’s contribution to the national economy and GDP in line with Vision 2030. These efforts have driven innovation, localized technology, and established Saudi Arabia as a global investment destination while creating high-quality jobs that contribute significantly to wages and benefits.

Al-Obaidi emphasized that economic diversification under Vision 2030 has resulted in positive outcomes through incentives for investments in industry, mining, and strong construction activity. These efforts span residential, commercial, and investment projects while targeting key sectors like telecommunications, technology, artificial intelligence, electric vehicles, transportation, and logistics, as part of the Kingdom’s strategy to become a global logistics hub.

Additionally, Saudi Arabia’s focus on localizing technology, promoting innovation, and fostering tourism and entertainment has driven the growth of national industries and the service sector while boosting employment rates, Al-Obaidi noted.

The government’s commitment to creating a competitive environment, increasing non-oil sector contributions, and providing incentives has strengthened the Kingdom’s ability to attract foreign investments and create new job opportunities. This, in turn, has enhanced operational revenues and improved efficiency, productivity, and quality across industries and services.

Gross Domestic Product Impact

Economist Ahmed Al-Jubeir told Asharq Al-Awsat that the government is offering comprehensive incentives to private sector players, including small and medium enterprises (SMEs), to capitalize on available initiatives and programs. These efforts are designed to promote business growth and help companies achieve their goals, ultimately benefiting Saudi GDP and the broader economy.

The initiatives and programs cover various private sector activities, providing low-interest loans and opportunities to participate in strategic and large-scale projects in health, tourism, real estate, and more. Specialized programs for construction and equipment sectors are also part of these efforts, Al-Jubeir added.

The latest data from the General Authority for Statistics confirms the government’s ongoing support for the private sector, which recorded operational revenues of approximately SAR 5.3 trillion last year.

Moreover, data indicates that the manufacturing sector contributed 30% of total operational revenues, followed by mining and quarrying at 21.8%, and wholesale and retail trade at 16%. Together, these sectors accounted for 67.8% of total revenues. Other sectors, including construction, finance and insurance, information and communications, and transportation and storage, contributed smaller shares.

Operational Expenditures

The report also revealed that manufacturing represented 41.5% of total operational expenditures, followed by wholesale and retail trade at 22.3% and construction at 7.6%. Collectively, these sectors accounted for 71.4% of operational expenditures, with other sectors like information and communications, mining and quarrying, and finance and insurance contributing the remaining shares.

Fixed Capital Formation

Total acquisitions of fixed assets reached SAR 1.5 trillion ($399.5 billion), while sales of these assets amounted to SAR 646.2 billion ($172 billion). Wholesale and retail trade had the highest contribution to total fixed capital formation at 22.6%, followed by manufacturing at 22.4%, mining and quarrying at 14.9%, and construction at 12.2%.

Other sectors, including information and communications, transportation and storage, and finance and insurance, contributed smaller shares.

According to GASTAT, total salaries and wages amounted to SAR 461.1 billion ($122.8 billion), representing 84.6% of total employee compensation. Meanwhile, benefits and allowances totaled SAR 83.6 billion ($22 billion), making up 15.4% of total compensation.