The DMCC Commodity Trade Index 2024 assesses ten major trading hubs by analyzing key aspects of commodity trade across ten specific sub-indicators. These indicators evaluate locational advantages, commodity wealth in items like coffee, grains, and gold, financial services, logistics infrastructure, and institutional strength, providing a comprehensive view of each hub's role in global trade. Data for these indicators come from reputable sources such as the World Bank and the United Nations.
In a global environment marked by increased trade regionalization due to geopolitical tensions, macroeconomic factors, and supply chain restructuring, trade hubs that leverage political neutrality, strategic geographic positions, and robust trade infrastructure are gaining competitive edges.
The UAE excelled in commodity endowment factors (77%), leading all other trading hubs, largely due to its natural oil supply. It also improved in institutional factors (66%), moving up to fourth place thanks to favorable tax rates and strong trade logistics infrastructure. The report highlighted opportunities for the UAE to enhance trade relations and improve scores in locational and trading partner factors.
Feryal Ahmadi, Chief Operating Officer of DMCC, remarked, “The UAE's continued prominence among the top global commodity trading hubs underscores the country’s resilience to headwinds and the ambitious vision of our leadership driving our growth. Dubai’s strategic location, world-class infrastructure, and business-friendly policies continue to attract global businesses and investors. The insights from the Commodity Trade Index in our Future of Trade report will guide us in shaping the future of commerce, driving sustainable growth, and fostering meaningful partnerships.”
In 2024, the United States leads the Index with a score of 59%, excelling in all categories, particularly in commodity factors and institutional strength. Switzerland entered the top three for the first time with a score of 46%, benefiting from locational advantages and institutional factors. Singapore and Hong Kong also improved their rankings, now at fourth and fifth places, respectively.
The Netherlands (40%) and the United Kingdom (38%) saw significant declines in their rankings. The relocation of Shell’s headquarters from the Netherlands to the UK affected the Netherlands' locational score, while Brexit and increased tariffs impacted the UK’s ranking. High corporation tax further weakened the UK’s score.
China (34%), South Africa (18%), and Nigeria (10%) remained the bottom three performers, struggling due to weaker institutional support and locational disadvantages despite their natural resources.
Overall, eight hubs saw a decline in their Index scores, highlighting the significant impact of geopolitical tensions and macroeconomic conditions on global trade.
The DMCC Commodity Trade Index 2024, now in its fourth iteration since 2018, provides crucial insights into the performance and dynamics of the world’s top commodity trading hubs.
The Future of Trade report series offers valuable insights for stakeholders navigating global trade’s evolving landscape. It provides detailed research and analysis on emerging trends, challenges, and opportunities in global trade, covering topics from commodity trading dynamics to technological and geopolitical developments. The fifth edition of the Future of Trade 2024 report explores three transformative trends: accelerated regionalization, supply chain restructuring, and a surge in digital services trade and AI adoption.
