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
TT
20

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.



Turkish Central Bank Governor: Decisive Tight Policy Contains Re-dollarization Risks

Türkiye's Central Bank headquarters is seen in Ankara, Türkiye in this January 24, 2014 file photo. REUTERS/Umit Bektas//File Photo
Türkiye's Central Bank headquarters is seen in Ankara, Türkiye in this January 24, 2014 file photo. REUTERS/Umit Bektas//File Photo
TT
20

Turkish Central Bank Governor: Decisive Tight Policy Contains Re-dollarization Risks

Türkiye's Central Bank headquarters is seen in Ankara, Türkiye in this January 24, 2014 file photo. REUTERS/Umit Bektas//File Photo
Türkiye's Central Bank headquarters is seen in Ankara, Türkiye in this January 24, 2014 file photo. REUTERS/Umit Bektas//File Photo

Turkish central bank governor Fatih Karahan said that monetary policy has been proactive and that re-dollarization risks are contained by a decisive tight policy stance, with retail FX demand more limited compared to March 2024.

In the text of a presentation which he made in Washington on Wednesday, Karahan said monetary policy transmission has improved considerably over the last year and that disinflation is continuing, "but risks are alive".

The bank hiked its main policy rate to 46% from 42.5% and lifted the overnight lending rate to 49% last Thursday. The move reversed an easing cycle in response to market turmoil triggered by the arrest of Istanbul's mayor last month, Reuters reported.

The tight monetary stance will be maintained until price stability is achieved via a sustained decline in inflation, Karahan said in the presentation on Wednesday.

The decisiveness regarding tight monetary stance is strengthening the disinflation process, he said.

Karahan said the pass-through effect on inflation of a weaker currency is modest, reflecting improvement in pricing behaviour, while falling oil prices support disinflation, but the global economic outlook is uncertain.

He also said demand has exceeded expectations, driven by goods consumption.

He said currency pass-through is expected to be around 35-40%, considerably lower than that during the summer of 2023, declining amid lower forex-protected KKM account balances, improved inflation expectations and moderating demand.