Emirates News Agency – UAE maintains position among world’s leading commodity trading hubs, says DMCC’s ‘Future Of Trade’ report
DUBAI, 5th July, 2022 (WAM) — The United Arab Emirates has maintained its position among the world’s leading commodity trading hubs, according to the third iteration of the Commodity Trading Index featured in the latest DMCC World Trade Report. future of commerce 2022.
The Commodity Trading Index assesses the role of ten key trading centers in global trade, ranking these countries according to their importance in global commodity trading. The rankings are based on an analysis of ten indicators across three main factors: geographic and trading partners, commodity endowments and institutional factors.
The 2022 Commodity Trade Index sees the United States maintain its position as the world’s leading trading center, with an overall score of 58%, although it does not score the highest in any of the three pillars of the commodity trade index. individual index. After leading the index in its first iteration in 2018, the United Arab Emirates ranks second with a score of 50%. The Netherlands entered the top three hubs for the first time, with 48%. Although the rankings remain relatively similar between 2020 and 2022, the gap between the upper and lower hubs has widened, suggesting that the pandemic has widened the pre-existing gaps between countries in terms of importance for trade in materials. raw.
Feryal Ahmadi, Chief Operating Officer, DMCC, said: “Over the past few years, the commodity market has been heavily impacted by the pandemic and associated supply chain issues. This was compounded by additional macroeconomic factors such as heightened geopolitical tensions. The global economic environment remains challenging, however, the commodity trading index has proven that the UAE has firmly maintained its position as a global trading hub. Building on this momentum, DMCC will continue to prioritize improving the ease of doing business and promoting the enormous business potential that Dubai possesses.”
The United Arab Emirates had the highest score for raw material endowment factors (74%), well ahead of all other trading centers, driven by its large natural supply of oil. The country came in third on institutional factors (72%), largely due to its attractive tax rates and strong performance in trade logistics.
The ranking of other global commodity trading centers includes Switzerland (48%), the United Kingdom (45%), Hong Kong (44%), Singapore (41%), China (32%), South Africa (21%) and Nigeria (16%).
The Future of Trade report is a synthesis of global views based on research, data and interviews with business leaders and trade experts. The 2022 edition of the report examines the changing nature of global trade, highlighting the role that geopolitics, technology and global economic trends will play in the future of trade, with a focus on trade growth, supply chains procurement, trade finance, infrastructure and sustainability. In addition, it provides actionable recommendations for governments, policymakers and businesses targeting trade growth.