United Arab Emirates Trade Insights: 2025 Economic Outlook

The United Arab Emirates is bordered by the Persian Gulf to the north, Oman to the east and southeast, Saudi Arabia to the south, and Qatar to the west and northwest. The capital of the United Arab Emirates is Abu Dhabi. The government of the United Arab Emirates is a federal type that includes seven independent emirates. These emirates are: Abu Dhabi, Dubai, Sharjah, Ajman, Umm Al Quwain, Ras Al Khaimah and Fujairah. The currency of the United Arab Emirates is the UAE dirham (AED). The official language of this country is Arabic, and the majority of people in the United Arab Emirates speak Arabic. Islam is the official religion of the United Arab Emirates and the majority of people in this country are Muslims. The United Arab Emirates has a dynamic and extensive market, and its main economic sectors include oil, natural gas, trade, transportation, financial services, tourism, and industry. Due to the presence of rich oil and gas resources, the United Arab Emirates is one of the main exporters of these products in the world. Also, the United Arab Emirates has other industries such as steel, construction, electronics, automobile, textile and food industries. The products that UAE businessmen import include machinery, electronics, chemical products, food products, textile products and industrial raw materials. UAE also exports oil and gas, steel industries, petrochemical products, textile products, electronic products and food products to other countries. The highest income of the United Arab Emirates may also change between years due to economic and oil changes.

The United Arab Emirates (UAE) presents a compelling case for trade dynamics in 2025 with a notable shift in its merchandise import value indices, which have decreased from 140. 7 in 2021 to an estimated 111. 4 in 2023. This decline contrasts sharply with the global average, which saw a moderate decrease from 124. 6 in 2021 to 101. 1 in 2023. This trend suggests a potential contraction in import value, opening new avenues for competitive pricing and strategic sourcing for international traders. The import volume indices for UAE also reflect a decrease from 129.

1 in 2021 to 111. 8 in 2023, aligning more closely with the global average of 104. 5 in 2023. This indicates a stabilization in physical quantities imported, hinting at a recalibration of demand and supply balancing. Notably, the UAE"s import unit value indices, slipping to 99. 6 in 2023, are slightly better than the global regression to 96. 8, suggesting that UAE might offer more favorable import terms compared to global markets. On the export front, the UAE"s merchandise export value indices have seen a significant drop from 126.

8 in 2021 to 94. 2 in 2023, against a global average that improved to 102. 3 in 2023. This decline points to potential price competitiveness challenges or shifts in global demand away from UAE"s export commodities. However, the export volume indices reveal a positive trajectory, increasing to 104. 4 in 2023 compared to 97. 5 in 2021, which surpasses the global average of 108. 4 for 2023.

This volume increase signals robust expansion potential in physical goods export, offering opportunities for businesses to capitalize on increased production capacities. As a pivotal player in West Asia, the UAE"s trade patterns emphasize the need for businesses to closely monitor commodity prices and volume trends. By leveraging platforms like Aritral. com, which simplifies international trade through product listing and AI-powered market insights, businesses can effectively navigate these changing dynamics. Entrepreneurs are encouraged to create a business profile to unlock detailed market visibility and streamline trade operations across this vibrant region.