Arab Trade in Goods and Services Drops to $3.4 Trillion Amid Export Decline

Kuwait, 07 October, 2024 : Arab trade in goods and services fell by 3.7% to USD 3.4 trillion in 2023, primarily due to a 9.2% decrease in exports, which totaled USD 1.8 trillion, alongside a 3.3% rise in imports reaching USD 1.6 trillion, according to the Arab Investment & Export Credit Guarantee Corporation (Dhaman).

In its second quarterly bulletin, "Dhaman Al-Istithmar" for 2024, the corporation noted a 7.2% decline in merchandise trade, bringing the total to USD 2.61 trillion. This drop was attributed to a 13.4% reduction in merchandise exports, which amounted to USD 1.42 trillion. Conversely, merchandise imports rose by 1.6% to USD 1.2 trillion, leading to a significant 50.8% decrease in the trade surplus, now approximately USD 232.1 billion.

Arab merchandise trade now constitutes 5.4% of global trade and 12.9% of trade among developing countries. Raw materials accounted for over 74% of merchandise exports, with fuel exports alone representing 58%. Manufactured goods comprised over 63% of the total merchandise trade.

The report highlighted that four Gulf countries, along with Egypt and Iraq, contributed to 78.5% of total Arab merchandise trade, with the UAE responsible for more than 35% of this total. To improve trade benefits, Arab countries must enhance intra-Arab trade, diversify exports, reduce dependence on primary commodities, and explore new markets. 

Dhaman, established in 1974 and based in Kuwait, is a multilateral institution comprising all Arab countries and four joint Arab financial institutions.

Source : www.zawya.com