UAE Retains Second Place In DMCC Commodity Trade Index 2024

In the realm of global commodity trading, the United Arab Emirates (UAE) continues to stand tall, maintaining its second-place ranking in the esteemed Commodity Trade Index, as revealed in the latest Future of Trade 2024 report published by the Dubai Multi Commodities Centre (DMCC).

The DMCC Commodity Trade Index 2024 meticulously evaluates ten key trading hubs, dissecting their performance across ten specific sub-indicators. These indicators, sourced from esteemed global institutions like the World Bank and the United Nations, encompass critical facets such as locational advantages, commodity diversity, including coffee, grains, and gold, financial services, logistics infrastructure, and institutional strength.

Notably, the UAE’s dominance persists, particularly in the category of commodity endowment factors, outpacing competitors with a substantial 77% score, propelled primarily by its natural supply of oil. Moreover, the nation has made strides in institutional factors, climbing one spot to secure the fourth position, attributed to its favorable tax regime and robust trade logistics infrastructure. The index underscores avenues for further collaboration and fortification of trade relationships to bolster scores in locational advantages and trading partner factors.

Feryal Ahmadi, Chief Operating Officer of DMCC, said, “The UAE's continued prominence among the top global commodity trading hubs underscores the country’s resilience alongside the ambitious vision of our leadership. The strategic location, world-class infrastructure, and business-friendly policies in Dubai provide us with a cutting edge that continues to attract businesses and investors from around the world.”

In 2024, the United States leads the Index, with a robust 59% score, excelling across all categories, particularly commodity factors and institutional strength. Switzerland’s ascension to the top three hubs for the first time with a score of 46% underscores its emergence as a significant player, driven by locational advantages and institutional prowess. Meanwhile, Singapore moved up three places to rank fourth with a score of 44%, while Hong Kong climbed up one position to fifth place with a score of 41%. Conversely, the Netherlands and the United Kingdom witnessed notable declines, attributed to various factors including corporate restructuring and geopolitical shifts. The bottom performers, including China, South Africa, and Nigeria, continue to grapple with institutional deficiencies and locational disadvantages.