UAE impressed by Sri Lanka’s large export portfolio

The Expo 2012 show that commenced yesterday highlights Sri Lanka’s export products across more than 20 sectors.

“Expo 2012 is a viable platform for UAE to identify the export product portfolio of Sri Lanka. In fact, we did not know that Sri Lanka has such a huge export portfolio until today,” said Rashid Al Telaji, Director of Government Communications Department, Ministry of Foreign Trade of UAE.

Al Telaji was expressing his sentiments to Rishad Bathiudeen, Minister of Industry and Commerce yesterday during a courtesy call (on the sidelines of Expo 2012) at the Ministry of Industry and Commerce, Colombo 3.

“We are surprised by your vast export portfolio and we gained new awareness on Sri Lanka. Having seen your portfolio, we are now keen to see potential possibilities of more trade with Sri Lanka. I shall be informing more businesses and corporates in UAE of Sri Lanka’s trade potential,” Al Telaji briefed Bathiudeen.

In response, Bathiudeen said: “We are thankful to the UAE for participating in this event. Expo 2012 is our showcase to the world on exports, investments and also tourism. The recent interest of UAE on Sri Lanka started after the first-ever high-powered UAE-SL Business Forum was successfully concluded in November 2011 in Colombo with the participation of Sheikha Lubna bint Khalid bin Sultan Al Qasimi, Minister of Foreign Trade of United Arab Emirates. I believe with Expo 2012, we can start further business-to-business contacts as agreed during the Forum.”

The UAE is the second largest Arab economy and the fourth largest oil exporter in the world. UAE growth is 4% for 2011 and this growth will be powered by new technologies. UAE’s capital markets including its stock exchange have grown rapidly in a short period in comparison to equity markets of other Gulf economies.

If  Morgan Stanley upgrades UAE to “emerging market status” in mid-December 2011 as expected by international business circles, then the UAE will join some of the world’s fastest growing economies — including the BRICs (Brazil, Russia, India and China) — in the emerging markets index, which can benefit Sri Lanka’s trade with the UAE even further. The UAE is one of Sri Lanka’s key trading partners among the Gulf economies. Though the trade patterns between both countries have been irregular, there has been an increase in trade especially from 2009 onwards. The total trade which was $ 528.01 m in2009 increased to $ 581.49 m in 2010 and in the period of January-September this year alone, the total trade recorded was $ 807.62 m. This year’s trade increase is mainly due to rise in import value of petroleum products at a value of US$ 267.62 m.

During the last 10 years the balance of trade has always been in favour of the UAE except in 2007. A total of 48 per cent of exports from Sri Lanka to UAE consist of Ceylon Tea followed by apparels at 18 per cent. Meanwhile, 51 per cent of our imports from UAE this year so far are petroleum followed by fertiliser (16%) and precious stones and pearls.