1. Scope of trading agricultural
products to UAE
By Devpriya
30/01/2011
2. Where is UAE?
UAE and especially Dubai is considered a
gateway into middle east
3. Why UAE?
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Strong government leadership
In future we can
Strategic location
target these
markets
Large and well established trade links
Regional economic growth and liberalization
Opportunities for re-export to Middle east and Europe
Accessibility
Stability
Open and free economic system
World class infrastructure
Low crime rate
Strong local commercial tradition
Extensive foreign trade network
4. Comparative analysis of UAE and India
Parameters
India
Dubai
Remarks
Population
1.2 billions
4.3 million
~300 times less pop
than India
GDP
$1.31 trillion
$230 billion ~5 times less GDP
GDP per
capita
$1,134
$50,070
~ 50 times more
purchasing power
than india
<1%
UAE heavily reliant
on imports
Agriculture 17.2%
contribution
to GDP
6. UAE as an Economy
Breakup within the non-financial sector
GDP~260 bil USD
Agriculture, livestock and fishing
Mining and Quarrying
The Non financial sector
Manufacturing industries
Electricity, gas and water
The Financial Corporations Sector
Construction
Wholesale, retail, trade
Government Services Sector
Restaurants and hotel
Transports, storage and communication
Real estate and business services
Social and Personal Services
7%
4%
1% 1%
9%
2%
6%
41%
89%
17%
8%
13%
2%
7. Abu Dhabi is the key consumer
GDP By Emirate
1%
7%
2%
1% 1%
Abu Dhabi
Dubai
32%
Sharjah
56%
Ajman
Umm Al Quwain
Ras Al Khimah
Fujairah
• Abu Dhabi is by far the largest economy in UAE
• Dubai is the trading and logistics hub for middle
east( more than 25 billion worth of goods pass
through the dubai’s ports)
8. UAE Trade Statistics, 2008, in Billion Dollars
17
India
Total
153
10
5
16
Imports
Exports
44
Re-exports
Source- Ministry of Economy, UAE
9. Imports from India
Vegetable
products
imported from
India is 3.26%
LIVE ANIMALS AND THEIR PRODUCTS
1.55
0.51
3.26
1.66
2.03
VEGETABLE PRODUCTS
14.28
ANIMAL OR VEGETABLE FATS, OILS AND WAXES
4.71
FOODSTUFFS, BEVERAGES, SPIRITS AND TOBACCO
3.15
MINERAL PRODUCTS
7.87
21.29
PRODUCTS OF THE CHEMICAL OR ALLIED INDUSTRIES
PLASTICS, RUBBER AND ARTICLES THEREOF
3.55
MISCELLANEOUS MANUFACTURED ARTICLES
TEXTILES AND TEXTILE ARTICLES
PEARLS, STONES, PRECIOUS METALS AND ITS ARTICLES
21.51
BASE METALS AND ARTICLES OF BASE METAL
14.62
MACHINERY, SOUND RECORDERS, REPRODUCERS AND PARTS
VEHICLES OF TRANSPORT
Source- Ministry of Economy, UAE
10. Vegetable products Imported from India
VEGETABLE PLAITING MATERIALS & PRODUCTS N.E.S
0.002
LAC; GUMS, RESINS,VEGETABLE SAPS AND EXTRACTS
0.003
Value in Billion Dollars
OIL SEEDS,INDUSTRIAL OR MEDICINAL PLANTS & FODDER
PRODUCTS OF THE MILLING INDUSTRY
0.036
0.016
1.003
CEREALS
0.116
COFFEE, TEA, MATE AND SPICES
0.152
EDIBLE FRUITS, NUTS,PEEL OF CITRUS FRUIT & MELONS
0.108
EDIBLE VEGETABLES, CERTAIN ROOTS AND TUBERS
LIVE TREES, PLANTS AND THEIR PARTS
Our target market
has a size of 5
billion USD
0.003
Source- Ministry of Economy, UAE
11. Some Indian importers to UAE
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Swati Enterprise
Sri Raghava Exports & Imports
Usha Agro Pvt. Ltd
Royal Exports and Imports
Cowboy Enterprise
Living & Leaving Green Footprints
Leelchand knitwear
Dbd Exports
Xion Importers and Exporters
7 OCEANS CORP
James Andrew Newton Art Exports Pvt Ltd
Swasthik International
Nature Exports
P.P.Links Enterprise
Sai Prasad Foods Ltd
Five Star Internatlonal
Jaya Traders
Vasundara sales corporation
TRADELINK INTERNATIONAL,india
Alfa Dehydration (India) Ltd.
The Kerala Agricultural Development Society(KADS)
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Unique Enterprises
K. B. Propducts Pvt. Ltd.
Balram Vegetable Company
M/s JTS International
Treasure Movers (Export & Import)
Jay Prathaapvin Exports & Imports
Jayaram Enterprises
Fresh Frozen Foods
PRP Imports & Exports
V4enterprises
Vatavruksha Krushi Abhiyaan Pvt Ltd
Sri Krishna Export Traders
Deepam Exports
Indian Tropical Agro Products P Ltd
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Edge India Agrotech
Omega Overseas
Vishaka Farms
Rkxports
Ashoka Oil Industries
12. Advantages of UAE free zones
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100% foreign ownership
100% corporate and personal tax exemption
100% repatriation of capital and profits
100% commercial levies and service charge
exemption
• 100% export and import duty exemption
• 100% expatriates workers/staff allowed
• 100% of control of your business at all times
13. Ease of trading in UAE
• For new-to-market products, you are strongly
encouraged to have your labels and products precleared and registered with local authorities.
• Many firms are based in free trade
zones, improves flexibility for trading around the
region.
• TAX FREE economy
• Exclusive agency agreements no longer legally
enforced for nearly all food products, but
distributors tend to expect a degree of
exclusivity, may seek contract.
• Culturally, the food import business community is
dominated by South Asians and Lebanese.
14. Doing business
• Distributors dominate
• Some of the larger retailers are sourcing
directly.
• Most importers prefer to avoid the cost of
letters of credit. Relationships are key.
• Typical distributor mark-up is 25
percent, typical retail is 15 percent.
– Warehousing and real estate major cost factors.
