Improving the Border Agency Cooperation
Among the OIC Member States for Facilitating Trade
73
and the Convention on International Transport of Goods Under Cover of TIR Carnets (TIR
Convention) of the United Nations Economic Commission for Europe (UNECE).
Exports of Abu Dhabi and the UAE rely heavily on oil and gas products. As of 2014, the UAE oil
industry accounted for two-thirds of the country’s total exports. Gold, jewelry and diamonds
are other important export commodities. However, despite the oil- and gas-driven exports, the
UAE has the most diversified economy among its peers in the Gulf Cooperation Council, largely
thanks to massive strategic investments in infrastructure and other economic development
projects over the past ten plus years. Main import commodities into Abu Dhabi and the UAE
include jewelry and gold, broadcasting equipment, computers and cars.
In 2014, Abu Dhabi and the UAE exported mainly to Japan (20%), India (13%), South Korea
(7.9%), China (7.7%), Singapore (7.5%) and Thailand (6.2%). There are three OIC member
states among the top ten export destinations: Oman, Pakistan and Malaysia (≈ 10% of total
exports). The main origins of imports into Abu Dhabi and the UAE were China (18%), India
(14%), the United States (7.2%), Germany (6.8%), the United Kingdom (4.9%) and Japan
(4.4%). There are no OIC member states among the top 10 import origins, the highest ranking
OIC country being Turkey (13th). The Intra-GCC is worth over 100 BUSD, and it is expected to
grow124.
Key indicators for Abu Dhabi
Abu Dhabi and the UAE rank comparatively high on indexes measuring performance of cross-
border trading. In the Global Competitiveness Index of the World Economic Forum, the UAE
ranks number 17 among 140 countries, and number two among all GCC and OIC countries
(after Qatar). In the OECD Trade Facilitation Indicators, the UAE outperforms its regional peers
and its income group peers, getting the perfect score on the external border cooperation
(measured as the degree of co-operation with neighbouring and third countries). However, the
UAE fares rather poorly in internal border agency cooperation, perhaps because of high level
of sovereignty that the seven emirates still have in terms of government functions and
services.
Abu Dhabi also performs well on the World Bank’s Doing Business ranking that measures the
ease of doing business in 189 economies worldwide. The UAE ranks number 31, but a more
granular, subnational analysis reveals that Abu Dhabi outperforms other emirates and the rest
of the GCC economies on the Trading Across Border Indicator. This means that companies, on
average, face fewer regulatory hurdles (number of documents), benefit from lower costs (USD)
and enjoy faster border-crossing times (hours) in Abu Dhabi than elsewhere in the Gulf region.
The report recommends, however, that Abu Dhabi should look for ways to further reduce the
cost of border compliance procedures, for example by improving the electronic Dhabi customs
clearance system.
Border control agencies
There are seven independent customs administrations in the UAE, one for each emirate. There
is also the Federal Customs Authority that coordinates customs activities over the entire UAE
and manages foreign customs relations. Although a recent reform increased the power of the
Federal Customs Authority, the seven customs administrations still wield considerable
124 The Peninsula Qatar
uly 2016)