Dubai Chamber of Commerce and Industry (DCCI) said that the trade between Dubai and China increased significantly in the first eight months of 2020.
Based on the results of its members’ exports, the Chamber reported that China has risen as the best performing sizeable market for its member exporters so far this year and as a result, it secured 10th place by value after rising four ranks than before.
Due to the remarkable acceleration in activity seen in recent months, the total declared value of the Certificate of Origin (COO) targeting China for the period January-August 2020 is $658 million, which translates into a 50 percent year-on-year growth compared to the same period in 2019.
In recent months, Dubai has emerged as a major supplier of rapeseed and colza oil to the Chinese market.
The market analysts stated that, while Canadian oil remains dominant, the Chinese traders continue looking to diversify away from the main source of their imports due to the high price of Canadian oil compared to alternative sources, such as Russia, Europe and the UAE.
Moreover, persistent political tensions between China and Canada and COVID-19 supply chain disruptions were also cited as key drivers of increased demand for alternative suppliers. Incidentally, these factors have been reflected favorably in recent months by Dubai exporters.
The breakdown by commodity form of the China-bound shipments showed that the majority of goods were vegetable oil and plastics, each with a 28 percent share. Sugar is in the third position, contributing another 16 percent to the total, followed by minerals with a share of 9 percent and waste from food processing with a contribution of 7 percent. The Dubai Chamber added that the remaining 12 percent of the total declared COO value came from other commodities such as paper products, chemicals, wood and textiles.
The natural development of trade relations with China, which began at a relatively low baseline is another main driver for the overall growth in Dubai’s exports, specifically exports to China.
The total number of COOs issued for China-bound shipments during the period January-August 2020 reached 1,936, almost double that of 1,038 issued during the same period five years earlier. As the current level of export activity has not yet reached its complete potential, this rapid growth is expected to continue in the coming years too.