Other BriefingsUAE-Pakistan Bilateral Trade Up 23% With Additional Growth Potential On Track
The total trade between UAE and Pakistan was 19.7 billion dirhams (US$5.36 billion) in 2021, with a growth rate of 23% compared to 2020. Due to certain disruptions, the figures were not released until December 2022. The 2021 figures were announced by Abdullah Al Muwaiji, Chairman of the Board of Directors of Ajman Chamber of Commerce and Industry (ACCI), of the Ajman Emirate.
However, this can be expected to have increased further during 2022 and into 2023 – Pakistan has initiated negotiations to sign Comprehensive Economic Partnership Agreement (CEPA) with the UAE to build deeper, more meaningful trade and investment ties with one of the most important economies in the region.
However, Faisal Niaz Tirmizi, the Pakistan Ambassador to the UAE has stated that UAE-Pakistan bilateral trade stood at US$10.6 billion in 2021-22, signalling an additional 45% growth over the past eleven months. Pakistan also has an assertive export and trade policy as concerns the UAE, with Tirmizi stating that “We aim to push present bilateral trade from US$10.6 billion to US$40 billion in next 10 years with active policy measures to remove trade barriers, rationalise tariffs and facilitate investors and traders of both sides. I have set a sight on US$15 billion bilateral trade target during my tenure in next three years.”
Pakistani exports to UAE include garments, food items, meat, cereals, agricultural products, fruits and vegetables and it imports oil and petroleum products from the UAE.
Muwaiji and Tirmizi discussed joint economic cooperation, ways to consolidate bilateral relations and examined available investment opportunities in the industry, trade, tourism and education sectors. Muwaiji stressed the importance of this meeting as it provided a platform to discuss opportunities for cooperation and partnership between Ajman and Pakistan in many sectors.
Ajman, although one of the smaller Emirates, is located on the southern Persian Gulf and has a long history as a trading Port. It also has a thriving Free Trade Zone hosting 1500 companies, including 256 manufacturing businesses, with the Port serving over 1,000 vessels a year. The Ajman Port and Ajman Free Zone are major contributors to the emirate’s economy. Exporting to over 65 countries, the Free Zone’s companies make up approximately 20% of the UAE’s overall industrial units.
The shipping distance from Ajman to Pakistan’s Belt and Road Initiative Gwadar Port, from where goods can be transported across Pakistan, is just under 700km, and from Ajman to Karachi 1,170 km.
Related Reading
About Us
Middle East Briefing is one of five regional publications under the Asia Briefing brand. It is supported by Dezan Shira & Associates, a pan-Asia, multi-disciplinary professional services firm that assists foreign investors throughout Asia, including through offices in Dubai (UAE), China, India, Vietnam, Singapore, Indonesia, Italy, Germany, and USA. We also have partner firms in Malaysia, Bangladesh, the Philippines, Thailand, and Australia.
For support with establishing a business in the Middle East, or for assistance in analyzing and entering markets elsewhere in Asia, please contact us at dubai@dezshira.com or visit us at www.dezshira.com. To subscribe for content products from the Middle East Briefing, please click here.
- Previous Article Iran, Saudi Arabia Improving Trade & Diplomatic Ties
- Next Article UAE, India Discussing Mutual Rupee Trade Settlements
