Category Archives: Production

UAE export community more united, stronger than ever to drive COVID-19 economic recovery, build the export-oriented economy: ADEX chief

ABU DHABI, The UAE export community is united, stronger than ever to drive COVID-19 economic recovery, build the export-oriented economy, said Mohammed Saif Al Suwaidi, Director General of Abu Dhabi Fund for Development and Chairman of the Export Executive Committee of Abu Dhabi Exports Office, in an Ope-Ed.

”The UAE export community is primed to lead the COVID-19 economic recovery and far beyond as we look to build the nation’s economy of the future for the next 50,” Al Suwaidi noted.

The export opportunity for UAE companies, he added, is very real. It can anchor their COVID-19 business recovery efforts as well as long-term sustainable growth strategies. They can do that with absolute confidence that they are backed by a powerful, diverse national export community support network that is united together behind them and the nation, today as well as for the next 50 and beyond.” The Op-Ed reads:”Since kicking off the Abu Dhabi Exports Office, ADEX, strategic partnership initiative just a few months ago, we’ve had direct conversations with thousands of business leaders from the public and private sector across the UAE. Two very important key learnings have come from those conversations.

First, the UAE export community is primed to lead the COVID-19 economic recovery and far beyond as we look to build the nation’s economy of the future for the next 50.

Second, UAE companies today have unprecedented access to a deep, strong and committed network of export community partners standing at the ready. Exporters can go to global markets today backed by a broad range of innovative and highly valuable strategic products, support services and data to empower and enable them to rapidly expand their international buyer networks.

Through these conversations, we’ve also picked up important insights into perceived challenges, concerns and fears keeping some of our exporters from reaching their full global growth potential. Topping our list of insights is risk of exposure, particularly in today’s uncertain climate. Those risks include perceived high initial investment, barriers to entry into international markets that are still early in the recovery and opening cycle, and limited access to capital to fund transactions at a time when maintaining liquidity is the number one business priority.

While those concerns are understandable, particularly given what our business leaders have endured over the past three months, they can be overcome. The UAE has built a strong and robust national export community support system structured to mitigate those risks through direct export transaction funding and insurance options as well as access to an extensive network of international market data and importer data bases.

Along with our network of strategic partners such as Etihad Credit Insurance, ECI, Abu Dhabi Global Market (ADGM) and Chambers of Commerce and Industry across the emirates, ADEX is working on two fronts. First, we want companies across the UAE to fully understand and embrace the export opportunity for the future of their businesses. From there, we need to unite the national export community to educate all our business leaders to fully understand the broad range of high-impact resources the UAE brings to the table on their behalf.

The case for why an export strategy matters to a company’s immediate economic recovery strategy as well as long-term sustainable business growth is well documented. Having that export strategy in place is particularly significant in a country like the UAE, that despite its relatively small population, roughly 0.13 percent of the global population, has established an incredibly powerful international brand and is viewed around the world as a highly trusted international trading partner.

There is a plethora of research quantifying the exporter productivity premium, growth and profitability opportunity. One UK study shows that companies who begin to export see a 34 percent increase in productivity in the first year alone and overall are 59 percent more productive on average than non-exporting companies. Similarly, a US study showed that SMEs moving into exporting see an average increase in revenue of more than 26 percent in the first three years and more than 42 percent within five years.

Research shows that investing in an export strategy actually reduces overall business risk while balancing growth and lowering unit costs through economies of scale. Companies can leverage export strategies to minimize the effects of seasonal fluctuations in sales and better weather economic ups and downs. They are viewed as more innovative, attract more highly skilled employees and stay in business longer.

We need to help UAE companies fully maximize their export opportunity by understanding how to access and leverage the great power and extensive resources of the UAE export community support network. To that end, as part of the ADEX partnership initiative we launched a national exporter education campaign starting with a series of educational workshops with Chambers of Commerce partners in Abu Dhabi, Sharjah and Fujairah as well as jointly with ADGM and ECI that drew more than 2,000 participants. And more workshops are in the planning stage.

Through our strategic alliance with ECI, we are combining a highly complementary suite of financial and insurance products to bring to UAE businesses a full range of credit facilities – direct financing, guarantees and export credit insurance – to help exporters maximize their competitiveness in the global marketplace. ADEX also provides indirect financing options through lines of credit for partner banks overseas to exclusively fund imports from UAE companies.

The UAE and Abu Dhabi Fund for Development invested in the development of ECI and ADEX respectively over the past three years as part of the larger long-term economic diversification and sustainable growth vision. Both groups play unique roles that can help companies safely and securely enter new global markets and add value to overseas buyers that make our exporters more competitive. Together, we directly fund and insure large export transactions from UAE companies while protecting the exporter from risk of non-payment or the kind of extended payment delays that today seriously threaten supply chain cash flow and liquidity.

UAE exporters can access the AED 550 million allocated by ADEX to drive export transactions either directly through ADEX or through a new offering that provides direct loans to overseas buyers to import UAE goods and services that are guaranteed by ECI. We are also working together to explore potential development of new joint products to both stimulate export growth as well as ease supply chain liquidity challenges.

We need to strengthen and expand these collaborative efforts to ensure everything we do across the UAE national export community results in action and impact. Action that directly supports and empowers our export companies to enter new global markets and impact that drives real growth for UAE export companies and expansion of our national export economy.

The export opportunity for UAE companies is very real. It can anchor their COVID-19 business recovery efforts as well as long-term sustainable growth strategies. They can do that with absolute confidence that they are backed by a powerful, diverse national export community support network that is united together behind them and the nation, today as well as for the next 50 and beyond.”

 

Source: Emirates News Agency

OPEC daily basket price stood at $42.66 a barrel Wednesday

VIENNA, The price of OPEC basket of thirteen crudes stood at $42.66 a barrel on Wednesday, 1st July, 2020, compared with $38.22 the previous day, according to OPEC Secretariat calculations.

The OPEC Reference Basket of Crudes (ORB) is made up of the following: Saharan Blend (Algeria), Girassol (Angola), Djeno (Congo), Zafiro (Equatorial Guinea), Rabi Light (Gabon), Iran Heavy (Iran), Basra Light (Iraq), Kuwait Export (Kuwait), Es Sider (Libya), Bonny Light (Nigeria), Arab Light (Saudi Arabia), Murban (UAE) and Merey (Venezuela).

 

Source: Emirates News Agency

Dubai Chamber explores prospects for expanding UAE-Russia food trade

DUBAI, UAE-Russia food trade has increased steadily in recent years due to cooperation on food security and Moscow’s efforts to diversify exports. Yet, a recent Dubai Chamber of Commerce and Industry webinar revealed that much potential still remains in both traditional categories and niche markets.

The webinar, titled ”Russia-UAE Food Trade in the Post-COVID-19 Era”, attracted 131 participants from the UAE, Russia, Eurasia and Africa, representing businesses operating in a wide range of economic sectors. The virtual event was organised by Dubai Chamber’s representative office in Azerbaijan in cooperation with Moscow Chamber of Commerce and Industry.

The event featured presentations on key trends impacting food trade in the UAE and Russia, Dubai’s efforts to boost food security, new innovations in agri-business and food manufacturing, and bilateral business opportunities that can be further explored.

Dubai’s food imports from Russia reached US$305 million in 2019, accounting for a large share of total bilateral trade, while Dubai’s food exports to Russia amounted to $114 million, according to government statistics revealed during the event. E-grocery, vertical farming, halal food, re-exports and food transportation were identified as high-potential areas where UAE and Russian companies can establish business tie-ups.

Addressing participants, Omar Khan, Director of International Offices at Dubai Chamber, highlighted the various competitive advantages that Dubai offers Russian food exporters looking to service MENA and African markets, such as the emirate’s strategic geographic position providing access to 2 billion consumers, world-class logistics infrastructure, premier business-friendly environment and a sound financial system.

“Dubai Chamber is seeing growing interest on the part of food producers in Russia who are keen to leverage Dubai as a re-export hub, and explained that the emirate can serve as an ideal partner that can help Russian companies diversify their export markets and provide them with exceptional logistics and transport support,” said Khan.

Russian businesses can benefit by establishing their own supply chain operations in Dubai delivering products straight to consumers and boost their reach across the GCC, the Middle East and Africa, Khan explained, adding that Dubai Chamber’s representative office in Baku, Azerbaijan, is ready to provide prospective investors with the support and resources they need.

Suren Vardanyan, Vice-President, Moscow Chamber of Commerce & Industry, MCCI, noted that the wealth of bilateral business opportunities goes well beyond food trade, and extends to other areas such as innovative food growing and processing technologies.

Issa Khoory, Representative, Dubai Fruits and Vegetables Traders Group, said the UAE’s world-class infrastructure has helped the country maintain a leading position in global food trade and weather COVID19 food supply challenges. He noted that the Fruits and Vegetables Traders Group, uniting leading food trade companies with headquarters in Dubai, is working with other stakeholders to promote sustainable domestic food production in the UAE both for the domestic consumption and exports, adding that UAE investors have a great deal of experience in contract farming, adding that this investment philosophy can be applied to Eurasian food manufacturing and processing entreprises.

Dmitriy Krasnov, Head of the Agro-export subdivision of the Russian Ministry of Agriculture of the Russian Federation revealed that Russia has been growing its food exports in recent years, adding that the country exported more than $25 billion worth of food products in 2019. He identified dairy, poultry, meat and confectionary items as high potential product categories for the UAE market.

Sergey Vologodsky, Vice-President, Russian Export Centre, noted that the Russian Export Centre has support mechanisms for exporters aspiring to grow exports to the UAE and other regional markets. Much potential exists in organic and halal food exports to the UAE, and the Russian Export Centre is ready to support these sectors, he pointed out.

Alexei Busev, Chairman of the Russia – UAE Committee at Moscow Chamber of Commerce & Industry, described Dubai as a prominent food trade hub, and explained that the Russian Food House in the emirate, representing 35 Russian companies, is capitalising on new trade opportunities. UAE companies should leverage resources provided by the Russian Food House and Moscow CCI to expand their business relations in Russia, he concluded.

 

Source: Emirates News Agency

Investor appetite for DGCX currency products continues to grow

DUBAI, The Dubai Gold and Commodities Exchange (DGCX) continues to see strong investor appetite for its currencies portfolio against a backdrop of ongoing foreign exchange (FX) volatility.

In June, the DGCX’s G6 currencies portfolio recorded year-on-year (Y-O-Y) volume growth of 265.56%, and has now recorded year-to-date (Y-T-D) volume growth of 456.69% compared to the same period last year. British Pound and Yen Futures Contracts were the most notable performers, registering Y-O-Y Average Daily Volume (ADV) growth of 307.58% and 1010.45% respectively.

The strong performance of the DGCX’s suite of currency products comes ahead of the launch of three FX Rolling Futures Contracts, which will provide investors with additional opportunities to efficiently hedge their risk exposure, particularly during this period of heightened volatility. The three FX Rolling Futures contracts – Euro (EUR), Pound Sterling (GBP) and Australian Dollar (AUD) against the US Dollar (USD) – will go live on Monday 6 July, 2020.

Les Male, CEO of DGCX, said: “The FX market across the region has been gathering pace in recent years, but it’s really come to the fore over the last few months in terms of investor appetite and maturity. This is particularly true in the UAE, which serves as a regional hub for retail and institutional traders and has solid regulatory infrastructure in place. Right now, the biggest factor influencing currency flows is of course the Pandemic and the uncertainty it’s caused globally, but we’re also seeing a number of other geopolitical events having a significant impact on currencies ranging from Brexit trade negotiations to concerns that the US and China trade talks may fall through again.”

Following the DGCX’s launch of three FX Rolling Futures Contracts next week, the DGCX plans to expand its portfolio of Indian Rupee (INR) Futures Contracts with the introduction of a Weekly INR Futures Contract against the US dollar (USD) later this month. The new contract will provide market participants with short-term hedging and arbitrage opportunities and will track the world’s largest pool of offshore liquidity for exchange-traded INR-USD currency products that the DGCX offers.

“The DGCX continues to play a pioneering role in the development of MENA’s financial markets. Dubai’s strategic geographic location between the Far East and Europe allows us to serve as a unique hub for global Forex flows. With the launch of these new products, we hope to further enhance the UAE and wider region’s rapidly growing influence and importance in the global FX market,” Male added.

Total volumes on the DGCX in June totaled 948,377, valued at USD 23.96 billion. The DGCX last month also recorded Average Open Interest (AOI) of 145,493 contracts.

 

Source: Emirates News Agency