UAE emerges world’s top tea re-ex­porter

The Pak Banker - - Front Page -


The UAE is a global hub in the tea re-ex­port mar­ket, ac­cord­ing to a re­port is­sued on Mon­day by The Min­istry of For­eign Trade to mark the In­ter­na­tional Cof­fee and Tea Fes­ti­val, which is sched­uled to be­gin in Dubai on Tues­day.

The study found that over the past five years, the UAE has be­come the world’s fore­most re-ex­porter of tea, with a 60 per cent share of the mar­ket, with a share that was val­ued at around $48 mil­lion (Dh176.2 mil­lion) in 2011.

The study, which was con­ducted by eco­nomic ad­vi­sor, Dr Ab­dul Hamid Rad­wan, un­der the su­per­vi­sion of Dr Mat­tar Ah­mad, head of the Anal­y­sis and Trade In­for­ma­tion De­part­ment, showed that the UAE is among the world’s top five tea im­porters, oc­cu­py­ing sec­ond place from 2007 2011, with the ex­cep­tion of 2009, when it ranked in third place af­ter the UK.

More­over, it pointed out that UAE tea im­ports have risen by around 50 per cent dur­ing the same pe­riod, from $324 mil­lion in 2007, to $485 mil­lion in 2011, and that the coun­try’s share of to­tal global tea im­ports has also grown from 8.3 per cent in 2007 to 9.4 per cent in 2011.

The study iden­ti­fied Sri Lanka as the UAE’s top sup­plier of tea, pro­vid­ing around 20 per cent of its tea im­ports from 2010 2011. The South Asian is­land state was fol­lowed by In­dia, with an 8 per cent share of the UAE’s tea im­ports dur­ing the same pe­riod. How­ever, both coun­tries’ com­bined share de­clined in favour of other world coun­tries from 30 per cent in 2010 to 26 per cent in 2011.

It also re­vealed that the UAE’s tea ex­ports were around $5.7 mil­lion in 2011 up by 68 per cent from 2010 while re-ex­ports of the com­mod­ity de­creased by 14 per cent dur­ing the same pe­riod, neg­a­tively af­fect­ing to­tal ex­ports with a 10 per cent de­cline.

The study showed that nearly 85 per cent of all UAE re-ex­ports were to two main des­ti­na­tions, 81 per cent go­ing to Iran and 4 per cent to Oman in 2011, calling for the ex­plo­ration of new mar­kets to main­tain the coun­try’s prom­i­nent stand­ing in the tea trade.

The study also re­vealed that the global tea im­ports were $5.704 bil­lion in 2011, up by 37 per cent from 2010, with Rus­sia be­ing the fore­most im­porter of tea dur­ing 2007 2011, im­port­ing $625 mil­lion of tea in 2011 (up by 11 per cent from 2010).

The UAE came in the sec­ond place dur­ing the same pe­riod with the ex­cep­tion of 2009 when it came in third place af­ter the UK.

Global tea ex­ports in 2011 were around $6.349 bil­lion, up by 3 per cent from 2010, reg­is­ter­ing how­ever a 5 per cent de­crease in quan­tity.

From 2007 to 2011, Sri Lanka was the world’s fore­most tea ex­porter, with a 22 per cent share of the com­mod­ity’s global ex­ports, fol­lowed by Kenya, with an 18 per cent share.

The world’s 5 top tea ex­porters to­gether hold a 70 per cent share of the world’s tea ex­port mar­ket, which re­flects an ex­port con­cen­tra­tion vul­ner­a­bil­ity as global sup­plies could be ad­versely af­fected in the event of the oc­cur­rence of droughts and other pro­duc­tion af­fect­ing phe­nom­e­non.

The study added that the global tea re-ex­ports were $99 mil­lion in 2011, down by 12 per cent in 2010, with a 15 per cent de­cline in quan­tity dur­ing the same pe­riod. This may be at­trib­uted to the in­ter­na­tional eco­nomic ram­i­fi­ca­tions of the EU cri­sis.

It also showed that global re­ex­ports of cof­fee were worth $349 mil­lion in 2011, with the USA hold­ing the big­gest share in this mar­ket at $238 mil­lion, while the UAE came in fifth place in this re­gard with $6.2 mil­lion in cof­fee re-ex­ports at a growth rate of 32 per cent from 2010 2011.

The study pointed out that the tea, in its raw form, re­quires stor­age time and pack­ag­ing ser­vices.

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