Trade Scenario Between Bangladesh and United Arab Emirates (UAE)

Bangladesh and UAE is maintaining cordial diplomatic, economic and business relations since independence. UAE is the first Gulf country which recognized Bangladesh’s independence in 23 March, 1975. More than half a million Bangladeshi expatriates are now living and working in U.A.E which creates a good market for Bangladeshi products. Moreover, both the countries are members of TPS-OIC (Trade Preferential System among the Members States of the OIC). Total trade between two countries in FY 2020-21 was US$ 1809.75 million. But the trade balance between the two countries is heavily in favour of U.A.E. Bangladesh exported goods worth US$ 495.85 mn. to the UAE and imported goods that amounted to US$ 1313.90 million in the FY 2020-2021. The trade balance between the two countries is shown below (Value in Million US$)

Major Exportable of Bangladesh to the UAE are:           

Woven garments, Knitwear, Vegetables, Jute goods, Jute yarn and twine, Dry food, Frozen fish, Footwear (Leather), Accumulator battery and parts etc. The export statistics of Bangladesh export to the UAE during FY 2020-2021 may kindly be seen at Annexure ‘A’.

Major imports form the UAE into Bangladesh are:

Mineral and Chemical products, prepared food products and Plastic articles thereof, Textile & textile articles etc.

Potential products of Bangladesh for export to the UAE:

Bangladesh is participating GULFOOD fair and International Apparel & Textile Fair regularly to promote agro-based product to the U.A.E market. Bangladesh is participating in the World Expo Dubai-2020 to project Bangladesh’s development and remarkable achievement and history & culture before the international audience. In order to boost up export from Bangladesh to the UAE, following steps may be taken into consideration:

Recommendations:

(1)   Bangladesh may engage with UAE for preferential tariff for Bangladeshi goods to U.A.E market under a Preferential Trade Agreement or signing FTA with GCC; 

 (2)  Bangladesh may consider taking part in trade fairs in U.A.E for the consolidation of existing market and creation of market for new products as there is huge demand of ethnic products because of large presence of Bangladeshi expatriates;

(3)   Trade delegations from both the government and private sectors may be exchanged for enhancing the existing trade relations between the two countries;

(4)   Initiative may be taken to increase export of the products like Garments, Textile fabrics, Halal food, Leather and Leather goods and Jute goods that have good prospects in U.A.E;

(5)   Bangladesh may take initiative to attract UAE entrepreneurs to invest in textile, oil and gas exploration, tourism and infrastructure development sectors in Bangladesh.

(6)   Bangladesh may request U.A.E to play proactive role in operationalisation of TPS-OIC, which was signed in 2002, in appropriate forum.

Bangladesh Top 20 Export Items to U.A.E