Abu Dhabi's non-oil trade surges as diversification drive gains pace

Khaleej Times

a day ago

Abu Dhabi is pressing ahead with its diversification agenda, as new trade data highlight a remarkable expansion in its non-oil sector.
According to the Abu Dhabi Chamber of Commerce and Industry (ADCCI), the emirate issued 10.3 per cent more certificates of origin between June 2024 and June 2025, a clear sign of widening export activity and the growing competitiveness of local industries. Certificates of origin — official documents confirming the national origin of goods — are crucial for exporters, as they allow products to qualify for preferential tariffs and smooth access to international markets under bilateral and multilateral trade agreements.
The strong momentum in certifications reflects Abu Dhabi's growing role in global commerce and the success of its strategies to empower the private sector. The Chamber said that chemicals, metals, and engineering industries were the most prominent beneficiaries, while small and medium-sized enterprises (SMEs) are increasingly making inroads into new markets, supported by specialised training, matchmaking initiatives, and digital export platforms.
This surge in export activity coincides with an exceptional performance in overall non-oil foreign trade. During the first half of 2025, Abu Dhabi's non-oil trade reached Dh195.4 billion, up 34.7 per cent from Dh145 billion a year earlier. Non-oil exports jumped 64 per cent to Dh78.5 billion, re-exports grew 35 per cent to Dh36 billion, and imports rose 15 per cent to Dh80 billion. This trajectory stands in sharp contrast to global trade trends, with the World Trade Organisation (WTO) estimating world merchandise trade growth at just 1.75 per cent over the same period.
Officials say the results reflect not only Abu Dhabi's robust infrastructure and logistics but also its ability to adapt quickly to shifts in global supply chains. 'Certificates of origin are gateways to broader opportunities and vital tools for elevating the private sector's contribution to Abu Dhabi's economic growth,' said Shamis Al Dhaheri, second vice chairman of ADCCI. He added that the Chamber will continue to facilitate exports and expand international partnerships to enable SMEs and large firms alike to tap global markets efficiently.
Analysts said the data indicate Abu Dhabi's diversification drive has gathered real momentum. 'Far from being overshadowed by oil, the emirate's non-oil trade is now one of the clearest signals that its economic transformation is on track, resilient and globally competitive,' they said.
The dynamism in Abu Dhabi mirrors the wider UAE's trade boom. Across the federation, non-oil trade for the January–June 2025 period hit Dh1.7 trillion ($462.8 billion), almost double the value recorded five years ago. The UAE has set a target of reaching Dh4 trillion by 2031, though government leaders now expect this milestone to be achieved several years earlier if current momentum continues. Comprehensive Economic Partnership Agreements (Cepas) with India, Indonesia, Israel, Turkiye, Cambodia and Georgia have already boosted bilateral trade, while further deals are under negotiation.
Ahmed Jasim Al Zaabi, chairman of the Abu Dhabi Department of Economic Development, described the emirate's progress as evidence of 'long-term planning, decisive policy execution, and a commitment to enabling the free exchange of goods, services, and innovations.' He emphasised that Abu Dhabi is working to entrench its position as a global hub by streamlining trade procedures, enhancing customs systems, and investing heavily in digitalisation.
Abu Dhabi Customs has been instrumental in this transformation. Director-general Rashed Lahej Al Mansoori noted that reforms and partnerships have accelerated clearance times and reduced trade bottlenecks, while digital inspection systems and integrated customs platforms are improving efficiency. Strategic assets such as Khalifa Port and the expanded cargo facilities at Abu Dhabi International Airport have reinforced the emirate's standing as a logistics and re-export hub serving the Middle East, Africa and Asia.
Global headwinds have not slowed Abu Dhabi's trajectory. WTO data show that merchandise trade volumes grew just 1.2 per cent in 2023, with forecasts suggesting only modest recovery in 2025. Yet Abu Dhabi has managed to grow non-oil trade more than twenty times faster than the global average in the first half of this year. Analysts say this is strengthening the emirate's appeal as a safe harbour for investors seeking both stability and opportunity.
The International Monetary Fund (IMF) forecasts that the UAE's non-oil sector will expand by more than 4 per cent in 2025, buoyed by manufacturing, investment inflows and tourism. Abu Dhabi's Industrial Strategy aims to more than double the size of its manufacturing base to Dh172 billion by 2031, further embedding industry and advanced technology into its economy.