Dubai— The UAE has retained its position among the top three global commodity trading hubs, according to the DMCC’s Commodity Trade Index 2024. The report assesses ten major trading hubs based on ten sub-indicators, evaluating locational advantages, commodity wealth, financial services, logistics infrastructure, and institutional strength, with data sourced from the World Bank and the United Nations.
In a global landscape marked by geopolitical tensions, macroeconomic shifts, and supply chain restructuring, hubs leveraging political neutrality, strategic geographic positions, and robust trade infrastructure are gaining competitive advantages.
The UAE excelled in commodity endowment factors, leading all other hubs with a score of 77%, largely due to its natural oil resources. The country also improved in institutional factors, ranking fourth with a score of 66%, driven by favorable tax rates and strong trade logistics infrastructure. The report highlighted opportunities for the UAE to enhance trade relations and improve locational and trading partner scores.
“The UAE’s continued prominence among the top global commodity trading hubs underscores the country’s resilience to headwinds and the ambitious vision of our leadership driving our growth,” said Feryal Ahmadi, Chief Operating Officer of DMCC. “Dubai’s strategic location, world-class infrastructure, and business-friendly policies continue to attract global businesses and investors. The insights from the Commodity Trade Index in our Future of Trade report will guide us in shaping the future of commerce, driving sustainable growth, and fostering meaningful partnerships.”
The United States leads the Index with a score of 59%, excelling in commodity factors and institutional strength. Switzerland entered the top three for the first time with a score of 46%, benefiting from locational advantages and strong institutional factors. Singapore and Hong Kong also improved their rankings, now occupying the fourth and fifth places, respectively.
The Netherlands (40%) and the United Kingdom (38%) saw significant declines in their rankings. The relocation of Shell’s headquarters from the Netherlands to the UK impacted the Netherlands’ locational score, while Brexit and increased tariffs affected the UK’s ranking. High corporation tax further weakened the UK’s position.
China (34%), South Africa (18%), and Nigeria (10%) remained the bottom three performers, struggling due to weaker institutional support and locational disadvantages despite their natural resources.
Overall, eight hubs saw a decline in their Index scores, underscoring the significant impact of geopolitical tensions and macroeconomic conditions on global trade.
The DMCC Commodity Trade Index 2024, in its fourth iteration since 2018, provides crucial insights into the performance and dynamics of the world’s top commodity trading hubs. The Future of Trade report series offers valuable insights for stakeholders navigating the evolving landscape of global trade, covering emerging trends, challenges, and opportunities in areas such as commodity trading dynamics, technological advancements, and geopolitical developments. The fifth edition of the Future of Trade 2024 report explores three transformative trends: accelerated regionalization, supply chain restructuring, and a surge in digital services trade and AI adoption.
