Japanese exports to UAE exceed $8 billion mark

DUBAI - Japan's exports to the UAE surpassed $8 billion mark for the first time, in 2007, according to Japan External Trade Organisation (Jetro). Exports rose by 33.1per cent to 8,052.66 million in 2007, compared to $6,050.10 million in 2006. A remarkable increase in the demand for machinery and equipment in the UAE could be seen as a major reason for this surge in exports. In data compiled by Jetro, it states that around 96 per cent of Japan's exports to the UAE are classified as manufactured products. The remaining 4 per cent is constituted of foodstuff, raw materials and mineral fuels. UAE, 8th largest trading partner: UAE has been one of the major trading partners of Japan, and currently the 8th largest trading partner. Japan-UAE trade occupies 3.04 per cent of Japan's world trade. UAE enjoys a surplus in her trade with Japan due to the huge quantity of mineral fuels that Japan buys from this country. In 2007, the surplus in favour of the UAE, in her trade with Japan, was $24.3 billion. Japan's world trade surged by 8.4 per cent to $1,334 billion in 2007. China was Japan's largest trading partner, with a bilateral trade value of $ 236.6 billion, followed by the United States of America with a trade value of 214.2 billion. Among the GCC states, Saudi Arabia was Japan's largest trading partner with a share of 3.16 per cent of Japan's world trade. Saudi Arabia stood 6th among Japan's top trading partners in the world. Growth Machinery and equipment covered nearly 75 per cent of Japan's exports to the UAE. Export of transport equipment, the main driving force behind the increases in Japan's exports to the UAE, surged by 44.58 per cent in 2007 to $3,712.6 million, compared to 2,567.9 million in 2006. Within this category, export of passenger motorcars with gasoline engines, having capacity between 1,500 cc and 3,000 cc surged by 71.5 per cent to 1,364.0 million. Export of higher capacity cars (above 3000 cc) increased by 67.5 per cent to 911.1 million. Export of general machinery surged by 26.03 per cent to $1,225.3 million in 2007, compared to 972.3 million in 2006. Major items in this category include shovels, bulldozers, cranes, diesel engines, self-propelled trucks, pumps, compressors etc. Export of electrical machinery surged by 25.18 per cent to $1,000.8 million. Major items included TV/Digital/Video Camera/Recorders, television sets, transformers, automatic circuit breakers, monitors for computers, telephone sets etc. Export of textiles grew by 18 per cent in 2007 to $184.5 million. Textile exports from Japan to the UAE has been on a growing trend for the past several years with an average 15per cent growth annually. Traditionally the UAE has been Japan's number one export market for certain textile materials such as woven fabrics of polyester staple fibre, of syntactic filament yarn and of acrylic staple fibre. Foodstuff exports, consisted mainly of prepared foodstuff and beverages, rose by 16.5 per cent to $ 26.3 million in 2007. As Japan is now planning to take new steps to increase the export of food items, such as, fresh fruits and Wagyu (Japanese beef) through various promotions, export of these products may have a major boost in the coming years. Imports from UAE Mineral fuels that include crude oils and gaseous hydrocarbons dominate Japan's imports from the UAE. In 2007, Japan imported 3.9per cent less volume of crude oil from the UAE, which helped to reduce the impact of the rise in the price of crude oils during the year. Japan's total imports from the UAE however grew by 2.24 per cent to $ 32.3 billion, against 31.6 billion in 2006. This relatively low rate of growth was against the growth rates of 24.7per cent, and 38.0per cent in 2006 and 2005 respectively. Japan imported a total of 378.5 million barrels of crude oils from the UAE during the year 2007, against 393.7 million in 2006. The average price of crude oils imported from the UAE increased by 6.18per cent to $69.63 per barrel in 2007, from 65.58 per barrel in 2006. Japan depends on imports for almost all of her crude oil requirements. In 2007, 25.3 per cent of this requirement was met by the UAE, the second largest supplier, after Saudi Arabia. The only other major item of import from the UAE is metal products, consisted of semi-finished aluminium. Japan imported a total of 107,227 tons of semi-finished aluminium from the UAE in 2007, against 97,306 tons in 2006. The value of aluminium imports from the UAE stood at US $ 303.2 million in 2007, in the place of 259.8 million in 2006.