Ainsley Brown | Story of Jamaica’s trade surplus with the UAE

In an era defined by geopolitical turbulence, global trade volatility, and intensifying economic nationalism, Jamaica’s private sector is quietly scripting a story of strategic adaptation, export resilience, and global ambition. One such story, almost unnoticed, is the island’s unlikely emergence of a trade surplus with the United Arab Emirates (UAE).

In 2021, Jamaican exports to the UAE totalled a modest US$ $167,000. By 2022, that figure had skyrocketed to US$8.56 million, an over 5,000 per cent increase in just one year. Fast-forward to 2023, and Jamaica had flipped its negative trade balance with the UAE into a US$2.7 million surplus.

In 2023, the UAE ranked 15th as Jamaica’s largest goods export market by value, just behind France and Japan, which ranked 14th and 13th, respectively, and ahead of China at 19th and its regional partner, the Dominican Republic, at 24th.

These numbers tell a story of opportunity seized amid global disarray. While traditional partners like the US, Canada, and the UK continue to anchor Jamaica’s exports, the UAE has emerged as an example of successful market diversifications, testament to the ability of Jamaican businesses to pivot swiftly and effectively in the face of shifting global trade currents.

HOW DID WE GET HERE?

The economic landscape of international trade is often characterised by strategic partnerships, collaborative initiatives, and impactful events that serve as catalysts for growth. Among such events are world’s fairs, also called global expos, held every five years.

Expo 2020 Dubai, held in 2021 stands out as a pivotal moment for Jamaica and the UAE, marking a milestone in the trade relations. Spanning 182 days from October 2021 to March 2022, the Expo attracted over 24 million visitors and featured participation from 190 countries.

Expo 2020 Dubai, held under the theme ‘Connecting Minds, Creating the Future’, provided an unparalleled platform for nations worldwide to showcase their innovations, cultures, and economic potential. It served as a hub for social, commercial, and cultural activities, connecting and integrating events, conferences, and business engagements both within and outside the Expo to the wider UAE and Dubai in particular.

And Jamaica was not to be left out.

For full disclosure and to add context, I was a member of the Jamaica Pavilion team at the Expo.

Jamaica’s participation in the Expo was strategically aligned with its national development objectives, focusing on promoting trade, investment, tourism, and culture and showcasing our capabilities as a global logistics partner. The Jamaica Pavilion at Expo 2020 Dubai earned the dual monikers of one of the ‘coolest’ and ‘must see’ pavilions, highlighting the social, economic, and cultural vibrancy unique to the Jamaican people.

The Pavilion was a hub for Brand Jamaica in the UAE, serving as a major marketing platform for the destination of Jamaica, whether for trade, investment, tourism, sports, or culture. The Jamaica Pavilion, with its audio-visual appeal, featured displays of our culture seamlessly blended with trade and investment opportunities, supported by the pulsating rhythms of our music. It also proudly showcased several Jamaican products for sale or sampling, including coffee, hot pepper sauce, and canned ackee.

Expo 2020 Dubai served as a springboard for Jamaica-UAE trade relations, catalysing unprecedented export growth with a more than 5,000 per cent increase in exports in 2022. This impressive growth figure pays tribute and signifies the effectiveness of Jamaica’s engagement efforts at the Expo and, consequently, the UAE. Additionally, it also underscores the receptiveness of the UAE market to Jamaican products, not just among the Jamaican diaspora but also among other expat communities (the largest segment of the UAE population) and Emirates market segments.

The following list of products, while not exhaustive, is intended to highlight growth areas and potential opportunities for Jamaican businesses to develop and expand in the UAE market:

1. Coffee - The UAE is a major market for coffee due to the traditional affinity for coffee. Additionally, the UAE has a strong expat, including the Jamaican diaspora, that could be tapped to grow coffee sales.

2. Pharmaceuticals - This represents an excellent opportunity to further grow a high-value non-commodity Jamaican export.

3. Iron and steel - The recycling of metal is in line with the UAE’s drive toward environmental sustainability, making it a viable market for Jamaican scrap metal.

4. Preparations of vegetables, fruits, nuts, or other plant parts, The UAE represents a great market for expanding Jamaica’s agro-processing industry in two ways. The first is direct exports for UAE consumption, and the second is an access point to the wider Gulf Cooperation Council (GCC) and/or Middle East and North Africa (MENA) region.

5. Plastics - The recycling of plastic waste aligns with the UAE’s drive toward environmental sustainability, making it a viable market for Jamaican scrap plastics, particularly from our growing drinks, juices, and water manufacturers.

By harnessing the legacy of Expo 2020 Dubai and building upon the foundation laid during the event, Jamaican exporters established and unlocked new opportunities. These efforts were sustained, as clearly reflected in the 2023 trade surplus of US$2.7 million and export growth from US$8.56 million to US$0.17 million, representing an 18.8 per cent increase.

TEMPLATE FOR FUTURE DIVERSIFICATION?

Jamaica’s engagement with the UAE offers a template for further market diversification. It illustrates what’s possible when businesses combine sustained engagement with international engagements initiated by the government.

This is not just theoretical. As the global economy continues to fragment into regional blocs and value chains, realign, Jamaica’s future prosperity might very well hinge on more such bold pivots and less reliance on legacy markets.

Ainsley Brown is an adjunct lecturer in logistics and supply chain management at the Mona School of Business and Management and UWI Five Islands Campus. Send feedback to brown.ainsleyc@gmail.com.