The China Morning Post has reported that the United Arab Emirates (UAE) has successfully established itself as one of the most vibrant trading hubs in Asia, quickly surpassing Hong Kong and emerging as a formidable competitor to Singapore, largely due to an ambitious economic initiative in the post-pandemic era. Defying global challenges, the UAE has doubled its non-oil trade from 2021 to 2025, aiming for a total of 3.8 trillion dirhams (approximately $1.03 trillion). This substantial growth, bolstered by effective engagement with emerging markets and strategic investments in logistics, has enabled the UAE to achieve 95% of its targets set for 2031.
The report highlighted that a significant portion of this growth has been driven by comprehensive economic partnership agreements, which are bilateral free trade agreements aimed directly at countries in the Global South. The UAE began its partnership with India in 2022, increasing the total number of these agreements to 14, valued at around 175.5 billion dirhams, involving several nations across the Asia-Pacific region, including Malaysia, New Zealand, and Vietnam, as well as raw material-producing countries in Africa and Latin America. Additional agreements have been signed or are currently in development with the Philippines, South Korea, and Japan.
Clemens Chai, a leading researcher at the Observer Research Foundation in Dubai, noted that economic interconnectedness has become a fundamental element of the UAE’s economic strategies over the years, adding that these comprehensive economic partnerships are paving the way for future opportunities.
The newspaper also observed that this trend is prominently reflected in the global presence of DP World, which operates more than 60 terminals worldwide and is expected to handle 90 million shipping containers by 2025—a figure comparable to that of Hong Kong’s Hutchison Ports. DP World is on track to challenge Singapore’s PSA International for the title of the world’s leading port management company in the coming years.
Ed Finley-Richardson, a shipping analyst and investor with the Paris-based research firm Contango, concurred that the UAE is surpassing Hong Kong in significance regarding global maritime trade. He told This Week in Asia that the UAE has established itself as a reliable partner for the West and, coupled with its strategic geographical location, has attracted capital searching for safety and stability. He emphasized that geopolitical factors are driving the economy, with many skilled ship brokers from Europe and Asia relocating to the UAE to enhance their careers.
Analysts consider these factors central to the UAE’s appeal, making it an indispensable player in global trade. Jay Burton, an academic based in Brussels specializing in great power competition in the Middle East, stated that since 1971, the UAE has opted to integrate into the global system. By demonstrating reliability, it has earned the trust of major powers, thus taking on a crucial role in linking markets, capital, and transportation routes across continents. This reflects how it has solidified its position within the international order from the outset.