Trade contributed Dh36.2 billion to the Dubai economy in 2006, representing the second most valuable activity after construction, a top official told a conference yesterday.

At a seminar for and about the Dubai trading community, Hamad Mub-arak Buamim, director-general of the Dubai Chamber of Commerce and Industry (DCCI) said that trade made up 21 per cent of the emirate's Dh168.8 billion GDP.

"The GDP of Dubai's trading sector has increased remarkably from 2001 to 2006, reaching an average annual growth rate of 26 per cent," he said.

Trading came second to the booming construction sector's average annual growth of 30 per cent, and faster than the total economy's average annual growth of 21 per cent.

More than 56,000 active DCCI members work in the trading sector, representing about 67 per cent of the chamber's membership, which reached 88,000 last year.

The director-general said that the DCCI has engaged in many initiatives to serve the Dubai trading community, including issuing certificates of origin online, document authentication, and accessing financial information about potential trading partners in any part of the world through the Dubai Trade Point service.



A recent survey revealed some traders, especially those dealing with household products and durables, have seen a decline in purchasing power due to inflation, said Belaid Rettab, Director of the chamber's Data Management and Business Research Department.

Others, meanwhile, forecast an increase in demand and purchasing power.The survey also revealed that Dubai markets are increasingly open to international competition, while small traders are more worried about the increasing level of competition, especially those dealing with textiles.

In the meantime, small and medium sized enterprises lack adequate support and protection, and many believe high property rentals will not come down.

The survey recommended clear regulations relating to the property market, a fair competition law, support mechanisms for small to mid-sized enterprise financing, business linkage, market information, training, research and development.

More than 56,000 active DCCI members work in the trading sector, representing around 67 per cent of the Dubai chamber's membership.