GCC region remains a significant player in global trade: report

The Gulf Cooperation Council (GCC) remains a significant player in global trade, despite experiencing a decline in trade volume in 2023, according to the latest Foreign Trade Report issued by the Statistical Centre for the Cooperation Council for the Arab Countries of the Gulf (GCC-Stat).

The GCC ranked sixth globally in the volume of trade in goods, accounting for 3.4 per cent of the world’s total trade in goods. However, the region’s overall trade volume dropped by 4.0 per cent to $1.5 trillion in 2023, down from the previous year.

In terms of merchandise trade balance, the GCC secured the third position globally, with a value of $163.7 bn in 2023. This marks a significant decrease of 57.1 per cent compared to the $381.3 bn recorded in 2022.

The report also highlighted the region’s performance in commodity exports, with the GCC ranking fifth worldwide. The region contributed 3.1 per cent to global commodity exports, valued at $0.8tn in 2023, reflecting a 14.5 per cent decline compared to 2022.

On the import side, the GCC ranked ninth globally, accounting for 2.7 per cent of total global merchandise imports, valued at $0.7tn in 2023. This represents a 13.4 per cent increase over the previous year.

A detailed analysis showed that the GCC’s trade in goods, excluding intra-regional trade, declined by 4 per cent to $1,482.4bn in 2023, from the same amount in 2022.

Commodity exports saw a significant drop, falling from $962.6bn in 2022 to $823.1bn in 2023, a decrease of $139.5bn. Conversely, commodity imports grew by 13.4 per cent, rising to $659.3bn in 2023, up from $581.3bn the year prior.

Oil exports, a major driver of GCC trade, fell by 20.5 per cent in 2023, totalling $525.5bn, compared to $661.1bn in 2022.

GCC countries’ key trading partners

In terms of trading partners, China remained the GCC’s top trading partner, leading in both the commodity trade volume and commodity exports indices.

The GCC’s commodity trade with China totaled $297.9bn in 2023, well ahead of India, the second-largest partner at $150.4bn, marking a $147.6bn gap.

China was also the largest importer of Gulf commodities, purchasing 19.2 per cent of total GCC exports, valued at $158.3 bn, though this was a decrease of 16.8 per cent compared to $190.4bn in 2022.

On the import side, China ranked first among the GCC’s main trading partners, accounting for 21.2 per cent of the region’s total merchandise imports. The value of imports from China grew by 10.8 per cent to $139.6bn, up from $126bn in 2022.

While the overall figures reflect a slight slowdown in the GCC’s trade activities in 2023, the region’s position within global trade remains robust, with China continuing to be a dominant partner in both exports and imports.