UAE named ‘rising star of trade’

DUBAI, UAE features among the top 10 markets that have rapidly improved their trade growth potential over the past decade, according to a new research from Standard Chartered, the Trade20 Index, which identifies the 20 rising stars of global trade.

The Trade20 Index, which determined the potential of each market for trade growth over the past 10 years by analysing economic dynamism, trade readiness and export diversity also features Oman and Bahrain among the nations that have shown the most progress.

The UAE sits on top of a list of several Middle Eastern markets that are showing impressive trade readiness momentum, propelled by infrastructure investment and an e-commerce market that is rapidly gathering pace.

Bahrain is a leader in terms of improving diversification, indicating the country’s long-term efforts to move its economy away from relying on oil and develop its manufacturing, finance and services sectors.

Oman is showing progress in terms of both economic diversity and trade readiness.

Sarmad Lone, Regional Co-Head, Global Banking, African Middle East, Standard Chartered, said, “There are tremendous opportunities arising from modernisation and diversification that we are seeing throughout the Middle East, all of which will help improve the region’s bid to become a financial and investment hub. The UAE’s position in the middle of Asia and Africa is helping to connect these important financial and trade corridors with the Middle East. Substantial opportunities are on the horizon, including those arising from the closer relationship between the UAE and China through the Belt & Road initiative.”

Trade20 examines 12 metrics across 66 global markets, the major global economies plus the major economies in each region, to reveal the 20 that are most rapidly improving their potential for trade to grow.

These markets are identified by measuring changes in 12 metrics under three pillars, comprising economic dynamism (foreign direct investment, export and GDP growth), trade readiness (infrastructure, e-commerce, and the ease of doing business), and export diversity (the range of exports).

While most traditional trade indices are based on a market’s present performance, the index captures change over time to reveal the markets that have seen the most improvement over the last five to 10 years. The study does not look at the trade growth potential of each market in absolute terms, but at its individual potential for trade growth relative to its size.

Source: Emirates News Agency