UAE non-oil trade seen rising up to 25 pct in 2011

The United Arab Emirates' non-oil trade should grow by up to 25 per cent this year, boosted by new links with Asian and African markets, a government official said on Sunday.

Non-oil foreign trade in the UAE, the world's third-largest crude exporter and key Gulf business hub, picked up strongly last year as global and local debt woes eased.

"For 2011, we hope to reach a 20 to 25 per cent increase," Abdulla al-Saleh, Director General at the foreign trade ministry, said in a telephone interview.

The forecast, however, depends on the pace of global recovery and potential external shocks, Saleh said: "In 2011, if there is much recovery in other sectors ... that will help us with trade with developing countries."

The value of the Opec member's non-oil trade jumped 12 per cent year-on-year to Dh605 billion ($165 billion) in January-October 2010, data from the UAE Federal Customs Authority showed earlier on Sunday.

Non-oil exports were up 37 per cent in the first 10 months of 2010 from the previous year, while re-exports rose 19 per cent. Imports, which accounted for 65 per cent of the total trade volume, increased by a more modest 6 per cent.

Saleh said he hoped a revival of the stalled World Trade Organisation Doha talks would help boost activity with UAE trade partners, mainly from fast-growing developing Asia and Africa.

"We hope to have progress in Doha negotiations, because protectionism will not facilitate trade and will have a negative impact on the recovery," Saleh said.

WTO members have launched an intensive push to conclude the nine-year-old Doha round to free up world trade this year.

Trade ministers from Australia, Brazil, China, the European Union, India, Japan and the United States will meet on Jan 28 during an annual gathering of political and business leaders in Davos to discuss the Doha talks.

However, there has been no progress in the long-delayed Free Trade Agreement between the EU and the Gulf Cooperation Council countries, Saleh said.

In November, a GCC official said Gulf Arab oil producing countries would sign the free trade agreement with the EU immediately if the bloc shows flexibility over export duties.

Saleh also said the UAE planned to focus on new trade links with India, Asian and African countries: "We try to always look for new markets to avoid any crisis. We want to expand our trade to developing markets, where we have more competitiveness."