The UAE Continues to Rank Among the Top Three Global Commodity Trading Hubs in Business, Economy, and Finance

The United Arab Emirates (UAE) has once again proven its dominance in the global commodity trading landscape, maintaining its second-place ranking in the Commodity Trade Index presented in the Future of Trade 2024 report by DMCC (Dubai Multi Commodities Centre).

The DMCC Commodity Trade Index 2024 evaluates ten major trading hubs by analyzing key aspects of commodity trade across various sub-indicators. These indicators encompass locational advantages, commodity wealth in products like coffee, grains, and gold, financial services and logistics infrastructure, and institutional strength. The data for these indicators are sourced from reputable global institutions such as the World Bank and the United Nations.

In a world where trade regionalization is on the rise due to geopolitical tensions, macroeconomic influences, and supply chain restructuring, trade hubs that can leverage their political neutrality, strategic geographic location, and robust trade infrastructure are gaining a competitive edge.

The UAE excelled in the category of commodity endowment factors, scoring 77%, primarily due to its abundant natural supply of oil. The country also performed well in institutional factors, scoring 66% and moving up to fourth place, attributed to its attractive tax rates and efficient trade logistics infrastructure. The Index highlighted opportunities for the UAE to enhance collaboration and trade relations to further boost its locational and trading partner factors.

Feryal Ahmadi, Chief Operating Officer of DMCC, emphasized the UAE’s resilience and growth trajectory, driven by its strategic location, world-class infrastructure, and business-friendly policies. Ahmadi stated that the insights from the Commodity Trade Index will guide the UAE in shaping the future of commerce, fostering sustainable growth, and building partnerships to support business success.

In the 2024 Index rankings, the United States led with a score of 59%, excelling across all categories, particularly in commodity factors and institutional strength. Switzerland made its debut in the top three hubs with a score of 46%, showcasing strength in locational advantages and institutional factors. Singapore and Hong Kong also saw improvements in their rankings, while the Netherlands and the United Kingdom experienced declines due to various factors such as corporate tax rates and geopolitical changes.

On the other end of the spectrum, China, South Africa, and Nigeria remained at the bottom of the rankings due to weaker institutional support and locational disadvantages despite their rich natural resources.

Overall, the Future of Trade 2024 report highlighted the impact of geopolitical tensions and macroeconomic conditions on global trade, with eight hubs experiencing a decline in their Index scores. The report serves as a valuable resource for stakeholders navigating the evolving landscape of global trade, providing insights into emerging trends, challenges, and opportunities shaping the future of commerce.

The fifth edition of the Future of Trade 2024 report delved into transformative trends set to reshape global trade, including regionalization, supply chain restructuring, and the surge in digital services trade and AI adoption. For more information on the Commodity Trade Index and the full report, visit www.futureoftrade.com.