How the UAE, US are looking to deepen multi-billion dollar trade ties

The two countries are strategic allies and trade ties between the nations are strong. For the 12th consecutive year, the UAE ranked first in the region and 19th in the world on the list of the largest receiving markets for American exports in 2020 – US exports to the country amounted to $14.75 billion last year.

During the first half of 2021, total foreign trade between the two countries exceeded $11bn, indicating continued growth in trade by the end of the year. Non-oil trade has shown significant growth in recent years, rising from $5.22bn in 2005 to $17.83bn in 2020.

Dr. Ahmad Belhoul Al Falasi, UAE Minister of State for Entrepreneurship and Small and Medium Enterprises, during the UAE-US Innovation and Investment Summit “expressed the UAE’s desire to maintain the current momentum in the trade and investment partnership between the two countries, highlighting the importance of working closely to encourage the flow of mutual investments in the next stage and facilitate the access of Emirati and American companies to promising opportunities in each other’s markets”, a statement from the UAE Ministry of Economy said.

As the UAE moves towards a post-oil future, it is looking to attract foreign direct investment (FDI) from abroad. The total value of FDI inflows into the UAE from the US amounted to $19.4bn by the end of last year. Meanwhile, the UAE’s investments make up the largest share in the total Arab investments in the US markets, at $44.7bn, by the end of 2020.

The UAE has been particularly active in research and development in the US, contributing more than $1.7bn to activities related to innovation and technology; they have contributed to supporting US exports worth $1.3bn.

Al Falasi said that UAE companies are keen to invest in technical industries, smart chip manufacturing, semiconductors, IT projects, and 5G communication networks, among others.