Inter-Arab Merchandise Trade Increased By 16.6% To Exceed $250 Billion In 2024

The Arab Investment & Export Credit Guarantee Corporation (Dhaman) reported a 4.5% increase in Arab merchandise and service trade, surpassing $3.6 trillion in 2024. This growth was attributed to a 1.7% rise in exports, reaching $1.9 trillion, and a 7.8% increase in imports, exceeding $1.7 trillion.

Arab merchandise trade expanded by over 5%, totalling $2.8 trillion. This was due to a slight 0.3% boost in commodity exports to $1.5 trillion and an 11% surge in imports, which surpassed $1.3 trillion. Consequently, the trade balance surplus for goods fell by 43%, amounting to $167 billion in 2024.

In terms of global positioning, Arab merchandise trade accounted for 5.6% of worldwide merchandise trade and represented 13.1% of the total merchandise trade among developing nations in 2024. Raw materials made up 73% of total Arab exports, with fuel alone constituting about 54%. Manufactured goods dominated Arab imports, comprising 64% of the total.

The geographic concentration of Arab trade persisted throughout 2024, with three Gulf countries, Egypt, and Iraq contributing to a combined share of 76%. Notably, the UAE alone represented over 40% of this total.

The top ten exporting countries to the region accounted for approximately 56% of all Arab merchandise imports. Conversely, the top ten importing countries from the region made up more than 57% of Arab exports. China remained the leading trading partner for the region with a significant share of 16% in total Arab merchandise trade.

Inter-Arab merchandise trade saw a notable increase of 16.6%, exceeding $250 billion and representing a 9% share of total Arab merchandise trade in 2024. This intra-regional trade was predominantly concentrated within Gulf countries, Egypt, and Iraq, collectively accounting for over 88%.

Trade Performance Indicators

The newsletter highlighted improvements in several performance indicators for Arab countries in 2024. These included enhanced trade openness and diversity of exports as well as an increase in commercial fleet vessels. However, there was a decline in export capacity indicators and connectivity to maritime navigation networks alongside increased reliance on imports during this period.

The data underscores ongoing trends within the region's trade landscape while highlighting areas for potential improvement moving forward.

With inputs from WAM