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The robust trade dynamics between Pakistan and the United Arab Emirates (UAE) have been underpinning the strategic relationship of the two countries for years. The UAE stands tall as Pakistan's third-largest trade partner, following China and the United States, official figures reveal.
South Asian policymakers also find the UAE an ideal export destination due to its geographical proximity, which significantly cuts transportation and freight expenses, enabling smooth commercial exchanges. In 2022, the trade between these two nations was valued at a whopping US$10.6 billion, with forecasts predicting this to double by the end of 2023.
Free trade zones here promise full foreign ownership, swift registration, and state-of-the-art logistical support, typically organised based on industry sectors. These include enticing tax breaks and myriad benefits to businesses.
In 2021, Pakistan's prime exports to the UAE included meat, cereals, clothes, edible fruits and nuts, textiles, and fuels. By 2022, cereals, clothing, and meat emerged as the top sectoral exports you can sell in the UAE.
The recent “preliminary” free trade agreement (FTA) between Pakistan and the Gulf Cooperation Council (GCC) marks a significant stride in their economic cooperation, especially with favourable trade terms. This move follows discussions between both parties, aiming to bolster Pakistan's exports to the six-member GCC bloc that comprises nations like Saudi Arabia, the UAE, Bahrain, Oman, Qatar, and Kuwait.
Pakistani businesses stand to gain a lot by exploring and leveraging the expansive UAE market. Building on this momentum, the door is now wide open for Pakistani enterprises to forge deeper relations, tap into diverse market segments, and position themselves as preferred trade partners in the Gulf region.
With a renewed focus on collaboration and strategic alliances, the FTA serves as a foundation for a prosperous and enduring trade relationship between Pakistan and the GCC nations.
If you’re keen to take on the opportunity, we take you through a comprehensive guide to navigating the requirements and procedures when exporting to the UAE market, ensuring a seamless and profitable trading experience.
When shipping to the UAE, the customs duty rate is generally 5% of the goods' value, including Cost Freight Insurance. For items like alcohol, it's 50% and a staggering 100% for cigarettes.
However, there are exceptions. Passengers' personal belongings are exempt from customs fees provided the value of gifts, perfumes, and personal luggage doesn't exceed AED3,000. These items should be limited in quantity and not appear commercial.
When the new FTA comes into effect, these tariffs may be reduced or eliminated.
Distinguishing between prohibited and restricted items is paramount for businesses aiming to navigate the customs and regulations of the UAE with ease.
In essence, prohibited items are completely forbidden from entering the UAE, no matter the circumstances. These are items that the UAE considers potentially harmful, offensive, or against its core values.
Prohibited items in the UAE include:
On the other hand, restricted items can enter the country, but under stringent conditions and usually require specific permissions or licences. Restricted items in the UAE and the authorising bodies include:
Restricted goods | Authorising party |
Flora and fauna, including live animals, plants; as well as fertilisers and pesticides | Ministry of Climate Change and Environment |
Armament-related items such as weapons, bullets, explosives, and pyrotechnics | Ministry of Defence Armed Forces Ministry of Interior |
Medicinal products, drugs, and related apparatus | Ministry of Health and Prevention |
Media content and associated items | Ministry of Culture and Youth |
Items related to nuclear energy | Federal Authority for Nuclear Regulation |
Communication equipment, including wireless and transmission devices | Ministry of Interior |
Alcoholic beverages | Ministry of Interior/Dubai Police |
Beauty and self-care products, including cosmetics | Ministry of Industry and Advanced Technology |
E-cigarettes and modern hookah devices | Ministry of Industry and Advanced Technology |
Brand-new tires for vehicles | Ministry of Industry and Advanced Technology |
When shipping from Pakistan to the UAE, liaising with local customs authorities is indispensable to ensure compliance. Relevant authorities include:
Navigating the documentation process is a critical step when shipping from Pakistan to the UAE. Ensuring every document is in place facilitates a smooth customs clearance. Here are the principal documents required for importing shipments:
Equipped with these documents, businesses can confidently approach the shipping process, ensuring their products reach their destination without undue delay.
Product packaging is an important aspect of ensuring goods are not only protected during transit but also presented in a manner that appeals to and meets the standards of the target market.
Understanding UAE's packaging requirements is paramount for a hassle-free export experience.
By ensuring your products meet these standards, you're paving the way for smooth transactions and potential growth in the UAE market.
In the world of exports, logistics play a pivotal role in ensuring success. Efficient logistics streamline processes, made possible with intuitive tools like MyDHL+ and DHL Express Commerce. This helps to ensure timely deliveries and satisfied clients.
DHL Express Pakistan, with its global reputation in international priority shipping, has been a cornerstone in facilitating exports from Pakistan to the UAE, ensuring businesses thrive and relationships flourish. Couple this with favourable shipping rates, and you can expect a smooth and fulfilling trade experience.
Get started with a business account and discover how a reliable logistics partner can elevate your export endeavours, optimise your operations, and help tap into new markets with confidence.