The Emirates News Agency has revealed that non-oil trade between the United Arab Emirates and Germany surged 10.5%, reaching USD 9.5 billion in 2022. Thani bin Ahmed Al Zeyoudi, the Foreign Trade Minister of the UAE, expressed the mutual desire of both nations to adopt innovative technologies in their trade activities.
Why Does It Matter?
The economic ties between the UAE and Germany hold significant importance. Minister of Industry and Advanced Technology Sultan Al Jaber recently headed an Emirati trade delegation that visited Germany. The UAE is Germany’s largest trading partner in the Middle East since the two countries established a strategic partnership in 2004.
The Germany-UAE Bilateral Trade
The United Arab Emirates (UAE) and Germany trade diverse goods, focusing on transportation-related items. Here are the primary German exports to the UAE in 2022:
- Aircraft, helicopters, and spacecraft (valued at USD 1.35 billion)
- Automobiles (valued at USD 762 million)
- Packaged pharmaceuticals (valued at USD 354 million)
Conversely, the leading Emirati exports to Germany include:
- Unprocessed aluminum (valued at USD 338 million)
- Aircraft components (valued at USD 84.5 million)
- Spark-ignition engines (valued at USD 84.3 million)
Recent developments have unfolded in the economic relations between the UAE and Germany. In March, the ADNO Company, a state-owned entity, entered into a series of cooperative agreements with multiple German firms concerning the advancement of clean hydrogen.
Furthermore, during Expo 2020 Dubai, UAE Foreign Minister Abdullah bin Zayed Al Nahyan engaged in discussions with German Economic Minister Robert Habeck, focusing on enhancing trade, investment, and energy collaboration.
Germany Considers Trade with UAE as the Most Important in the Region
In 2022, the UAE was Germany’s primary trading partner within the region. It had exports from Germany, amounting to USD 8.4 billion. In 2022, Germany witnessed a noteworthy 67% year-on-year increase in imports from the UAE. This resulted in the total value reaching USD 1.3 billion.
The Brokerschart experts note that these bilateral trade statistics underscore the robustness of their relationship. And their collaboration has been strong in decarbonization efforts to combat climate change. Moreover, it allows both nations to embrace a hydrogen-powered future.
Establishing an international hydrogen value chain assumes immense significance for their economies. It serves as the foundation for decarbonizing the energy sector. Besides, it aligns with the goals of the Paris climate accords.
The cooperation between the UAE and Germany acts as a catalyst for accelerating the energy transition. It facilitates expanding green hydrogen production, as previously agreed upon by both countries.
It also enables large-scale export of this product from the UAE to Germany and Europe. The ambassador’s remarks were made following the inaugural shipment of hydrogen-based ammonia. The shipment was transported from the UAE to Germany for Aurubis AG in Hamburg in October of the preceding year.
Brokerschart is a financial and analytical resource specializing in the study and analysis of stock brokers, and trading platforms brokerschart, brokers, and other aspects of trading.