Arab Trade Surges to $3.6T in 2024 Amid Import Boom

The Arab trade landscape experienced an impressive uptick of 4.5% in 2024, crossing the $3.6 trillion mark, propelled by consistent export growth alongside a notable rise in imports. Exports amounted to $1.9 trillion, reflecting a modest increase of 1.7%, while imports surged by 7.8% to surpass $1.7 trillion, leading to a narrowing trade surplus.

Focusing solely on merchandise, trade expanded by over 5% to reach $2.8 trillion. Commodity exports saw a slight rise of 0.3%, totaling $1.5 trillion, while imports surged by 11%, exceeding $1.3 trillion, indicating a shift toward higher manufactured goods consumption. Despite the upward trend, the trade surplus decreased significantly by 43% to $167 billion.

Arab nations now represent 5.6% of the global merchandise trade and 13.1% within developing markets. Raw materials were predominant in exports, constituting 73%, where fuel alone contributed to 54% of total merchandise exports. Conversely, manufactured goods led imports, making up 64% of the total volume, signaling continued consumer and industrial demand.

Trade remains geographically concentrated, with three Gulf nations, along with Egypt and Iraq, accounting for 76% of merchandise transactions. The UAE alone comprised over 40%, illustrating its pivotal role in regional trade dynamics. China retained its title as the largest trading partner, making up 16% of the overall Arab trade.

Inter-Arab trade saw a robust increase of 16.6%, surpassing $250 billion, which is about 9% of total regional trade. This rise was primarily noticed among Gulf nations, Egypt, and Iraq, together representing 88% of inter-Arab commerce.

While indicators are mixed, showing improvements in trade openness and export diversity, declines were recorded in export capacity and maritime connectivity, in tandem with increased dependency on imports.

This data portrays a region navigating substantial trade growth alongside shifting economic priorities, revealing both avenues for expansion and hurdles concerning connectivity and self-sufficiency.