Spices are a promising commodity to export from East Kalimantan to the United Arab Emirates (UAE). This is because the UAE is recorded as one of the largest consumers of spices in the Middle East. Some of the spices that are widely imported by the UAE include turmeric, pepper, cardamom, cinnamon, nutmeg, candlenut, cumin, coriander, and star anise. "Indonesia has great potential to increase spice exports to the UAE, especially turmeric, pepper, and cardamom," said Head of the Indonesian Trade Promotion Center (ITPC) Dubai Widi Haryono, Wednesday (3/18). The retail sector is also recorded as dominating the food and beverage market in the UAE, with a contribution of 70%. "Consumers in the UAE are increasingly looking for food and beverage products with a short shelf life, because they are considered fresher and more nutritious," said Widi.
The UAE applies low import duties, an average of 5%, even 0% for essential goods such as staple foods and medicines. The UAE also provides gradual elimination/reduction of import duties for various tariff items. "The ease of market access provides a great opportunity for Indonesian exporters to increase the competitiveness of their products in the UAE," he concluded. It is known that bilateral trade between Indonesia and the UAE in 2023 showed a positive trend. Total trade reached USD 5.05 trillion, with Indonesian exports of USD 3.06 billion (up 15.57%) and imports of USD 1.99 billion (down 15.23%). Indonesia's non-oil and gas exports dominated with a contribution of 99.87% of the total export value.
The Indonesia-UAE trade surplus reached USD 1.067 billion, a significant increase from the previous year. The food and beverage sector in the UAE is projected to grow rapidly. In 2029, the market value of the sector is estimated to reach USD 43.98 billion, from USD 19.98 billion in 2024.
