News Article by GT posted on August 30, 2008 at 12:53:19: EST (-5 GMT)
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UAE's total investments in Sudan hit Dhs25b DUBAI (The Gulf Today) : The economic relations between Sudan and UAE have witnessed accelerated development during the last five years. UAE is considered the second largest investor in Sudan after China with a total investment of about $7 billion (Dhs25b) and a bilateral trade that grew annually by more than 30 per cent, according to report by Dubai Chamber of Commerce and Industry(DCCI). During the recent years trade between Dubai and Sudan flourished at a fast pace. Dubai non-oil foreign trade with Sudan totaled Dhs3.1 billion, out of which, 78 per cent were re/exports and 22 per cent were imports. Sudan's economy is booming on the back of the increase in oil production, high oil prices, and large inflows of foreign direct investment. Real GDP growth registered more than 10 per cent per since 2006. The country continues to take steps toward liberalisation. Economic indicators UAE ranks in the 37th place with nominal GDP of about $192 billion, while Sudan is ranked in the 65th place, according to the country ranking list published by the International Monitory Fund (IMF). In 2007, Sudan real GDP grew by 12.8 per cent indicating the large expansion of the economy. Although the UAE economy is larger than that of Sudan in terms of GDP, but the GDP growth rate of Sudan is faster than that of UAE (12.8 per cent and 8.5 per cent respectively). On the other hand, the UAE per capita GDP of $ 49.9 thousand exceeds that of Sudan which was estimated at $ 2.5 thousand. The industrial and the services sectors are the major drivers of the economy of the two countries. Both sectors occupy the lead share of their respective GDPs. However, agriculture has an equivalent share in the economy of Sudan (31.5 per cent). Contrary to that, the agricultural sector accounted for only 2 per cent in the UAE GDP. Investment environment The Sudanese government in its efforts to improve the business environment and strengthen the economy has introduced a medium term development program from 2004-2009 aiming at injecting more $ 400 billion to improve the infrastructures (roads, telecommunications, education, health systems among others). To improve and promote the investment climate, the Sudanese government has concluded a number of regional agreements aim at encouraging investment and creating trade opportunities with other countries such as COMESA trade bloc, Arab Free Trade Organiszation and WTO. Furthermore, Sudan has strengthened relations with regional and international organisations and corps that related to investment. The Sudan Government encourages foreign direct investment and is undertaking steps to improve the investment climate. The government looks forward to solving the problem of the south and Darfur to establish stability and security in the southern and western states and in the entire county Foreign trade In 2006, Dubai trade with Sudan, not including the free zones, accounted for more than 90 per cent of the UAE total trade with Sudan. Therefore, Dubai trade with Sudan in the year 2007 inclusive of free zones is used to represent the recent UAE trade with Sudan. During the period 2002-2007, Dubai imports from Sudan increased by cumulative annual growth rate (CAGR) of 50 per cent, while on the other hand, Dubai re/exports to Sudan increased by CAGR of 29 per cent (figure 1). In 2007, Dubai imports from Sudan increased by 66 per cent. In 2007, Dubai imports of pearls, precious or semi-precious stones, precious metals from Sudan accounted for more than 88 per cent of the total imports followed by the mineral fuels, mineral oils, bituminous substances, mineral water, which accounted for 9 per cent. The less imported products are oil seeds, oleaginous fruit, industrial or medicinal plants (0.8 per cent) and aluminium & articles thereof (0.4 per cent). Dubai re/exports to Sudan are dominated by the nuclear reactors, boilers, machinery, parts thereof that accounted for 21 per cent of the total exports/re-exports followed by electrical machinery and equipment and parts thereof (15 per cent), vehicles other than railway or tramway rolling-stock (12 per cent) and plastics and articles thereof (4 per cent). The extraction of petroleum has given the Sudan an extra important economic dimension. Furthermore, the strategic geographic location makes Sudan a passage to other African countries which qualifies it as one of the commercial and investment inlets to those countries. The diversification of Sudan economy has opened the door for variety of investment opportunities in different fields such as agriculture, manufacturing and services. Agricultural sector is one of the Sudan's strongest sectors. As the availability of cultivated land and natural irrigation systems provide an extra opportunity for investments in the agricultural sector. |