Uganda’s merchandise exports to the Middle East recorded a sharp increase in November 2025, rising by $270.06 million (about Shs1.03 trillion) and firmly cementing the region as the country’s largest export destination.
The surge underscores the growing importance of Middle Eastern markets to Uganda’s external trade and reflects a broader shift towards non-traditional trading partners.
According to the Performance of the Economy Report for December 2025, the Middle East accounted for 42.7% of Uganda’s total export earnings during the month.
This was significantly higher than other regions, with the East African Community contributing 21.7%, Asia 16.9% and the European Union 13.5%.
The report attributes the strong performance to increased demand for Uganda’s merchandise exports in Middle Eastern markets, which continue to absorb a growing share of the country’s output.
Over recent years, the region has emerged as a key destination for Uganda’s agricultural commodities, minerals and manufactured goods, supported by expanding trade links, improved logistics and favourable market access conditions.
Beyond the Middle East, Uganda also recorded notable export growth to Asia and the European Union in November. Exports to Asia more than doubled, increasing from $92.2 million (about Shs350.4 billion) in October to $201 million (about Shs763.8 billion).
Similarly, exports to the European Union rose sharply from $87.3 million (around Shs331.7 billion) to $160 million (about Shs608 billion).
“These developments point to a broad-based recovery in export performance, with multiple regions recording strong month-on-month growth,” the report states.
The near doubling of exports to Asia and the European Union suggests renewed demand in those markets and reflects improved competitiveness of Uganda’s export products, alongside the gradual easing of global supply chain disruptions that had previously constrained trade.
Despite the strong export performance, the report highlights continued pressure on Uganda’s trade balance, largely driven by a rising import bill.
Year-on-year, total imports increased by 36.5%, from $1,042.12 million (about Shs3.96 trillion) in November 2024 to $1,422.84 million (Shs5.41 trillion) in November 2025.
The increase was mainly attributed to formal private sector imports, particularly non-oil items such as prepared foodstuffs, machinery, vehicles and gold.
These trends reflect sustained domestic demand for industrial inputs, capital goods and consumer products, as well as ongoing investment activity in construction, manufacturing and transport-related sectors.
As a result, Uganda continued to post trade deficits with several major trading blocs. In November 2025, the country recorded a trade deficit of $304.85 million (about Shs1.16 trillion) with the Rest of Africa, $204.99 million (approximately Shs 779 billion) with Asia, and $174.02 million (around Shs 661 billion) with the East African Community.
However, there were signs of easing pressure on the import side compared to the previous month. Merchandise imports declined by 9.4%, falling from $1,570.91 million (about Shs5.97 trillion) in October to $1,422.84 million in November.
Formal non-oil private sector imports registered the largest decline, dropping by 10.3% from $1,405.43 million (around Shs5.34 trillion) in October to $1,260.38 million (about Shs4.79 trillion) in November.
The report links the decline to reduced importation of selected goods, possibly due to tighter financial conditions, inventory adjustments by businesses or seasonal demand patterns.
Economists say the combination of rising exports and moderating imports could ease pressure on Uganda’s external position if sustained in the coming months.
The strong performance in Middle Eastern markets, in particular, presents an opportunity to deepen trade relations, diversify export products and attract investment in value addition and processing.
