Dubai: Dubai, which has recently emerged as an internationally recognised trading, financial and servicing hub, is all set to promote trade relations with India, says Sultan M. Lootah of the Trade and Industrial Development department of the Dubai Chamber of Commerce and Industry here.

Talking to a group of visiting journalists from Kerala, Mr. Lootah said a business delegation from the chamber would visit India, preferably Kochi or Chennai, to explore the possibilities of expanding trade and cementing the ties between the two countries.

He said Dubai business sectors would benefit from the visit and sectors such as tourism industry and general services would stand to gain. Besides overall retail, wholesale and import, export and re-export businesses would have newer opportunities with such exchange visits.

Among the items of trade between the two countries, precious metals and jewellery are gaining much importance. There are six major categories of goods that dominate the trade between the two countries, namely food items, textiles and textile goods, precious metals and jewellery, base metal articles, machinery and equipment, and transport equipment. Dubai imported precious metals and jewellery to the tune of Dh 10.3 billion in 2004, which represented 58.5 per cent of the total value of goods imported by Dubai from India. Exports and re-exports of precious metals and jewellery from Dubai to India in 2004 were to the tune of Dh 12.1 billion, which represented 88.3 per cent of Dubai's total value of exports and re-exports to India.

Textiles and textile items are the second largest export item from India to Dubai. In 2004, it was to the tune of Dh 1.8 billion, constituting 10 per cent of Dubai's total imports from India.

India is the second largest exporter to Dubai after China, with total export value of Dh 17.6 billion (US $4.8 billion) in 2004.

However, total bilateral trade in goods has seen a remarkable increase in the recent years. The increase has been 383 per cent (from Dh 6.5 billion in 2000 to Dh 31.4 billion in 2004).

Jameel N. Al Shamsi, trade exhibition and fairs manager of the Trade and Industrial Development department of the Dubai chamber, said non-oil trade with India accounted for nearly US $8 billion. The representatives of the Dubai chamber also said there was a move to amend the company law to increase the equity of investing industries from the present ceiling of 49 per cent.

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