Dubai Q1 export trade booms by 79%, cashing in on oil prices

Dubai is feeling the searing heat of the oil boom in the Middle East with exports rocketing by 79 per cent in the first quarter, and total non-oil trade in the region’s commercial hub city up by 46 per cent to $58billion.

This is a fantastic performance by any yardstick. Note that these figures exclude oil earnings which will have been more than $10 billion in Q1 thanks to surging oil prices.

The statistics are compiled by Dubai World, which runs the ports and free zones of Dubai and show direct non-oil trade – excluding free zones and customs warehouses grew from $25 billion to $39 billion.

Dubai World chairman Sultan bin Sulayem said: ‘The growth is fuelled by the government’s relentless efforts to upgrade the existing modern infrastructure of ports, airports and land transportation networks connecting Dubai to the world.’

He also noted that high oil prices are stimulating increased public spending in the region, while locally the ‘unprecedented construction boom and commercial development are factors that contributed to this growth.’

This is certainly a bold set of statistics to quote to anybody who thinks the Dubai boom lacks substance. Dubai has always been a trading centre and this continues to be the backbone of its economy. And in the midst of the biggest oil boom in a generation Dubai is profiting handsomely from its past investment in infrastructure.

Other cities might wish that they had done the same now. But plans are no substitute for completed infrastructure to service and profit from the boom.