Arab Trade Flourishes: A Bright Outlook for 2024
AMMAN – Exciting news from the Arab Investment and Export Credit Guarantee Corporation, commonly known as Dhaman. The latest report indicates a robust 4.5 percent growth in Arab trade, with the total transactions in goods and services expected to reach an impressive .6 trillion in 2024. This surge is a significant indicator of the region’s increasing economic vitality and interconnectedness.
Contributing to this positive growth is a notable 1.7 percent rise in exports, which have climbed to a remarkable .9 trillion. Import figures tell a similar story, showcasing an impressive increase of 7.8 percent, resulting in a total exceeding .7 trillion. The latest findings, detailed in Dhaman’s second quarter “Investment Guarantee” bulletin for 2025, reveal that the trade of goods alone surged by more than 5 percent, reaching up to .8 trillion, with commodity exports hitting .5 trillion.
Interestingly, while imports leaped by 11 percent, surpassing .3 trillion, the region recorded a merchandise trade surplus of 7 billion. However, this figure reflects a decrease of 43 percent compared to the previous year—a point of reflection rather than concern as the overall trade balance continues to broaden.
It’s noteworthy that Arab merchandise trade constitutes about 5.6 percent of global trade and an impressive 13.1 percent of trade among developing nations, demonstrating the burgeoning influence of Arab markets on the world stage. Raw materials dominate the exports, accounting for a staggering 73 percent, with fuel comprising a considerable 54 percent. Meanwhile, manufactured goods make up a significant 64 percent of imports, showcasing a dynamic exchange of commodities.
Geographically, trade remains concentrated, with three Gulf states, along with Egypt and Iraq, responsible for 76 percent of total Arab trade. The United Arab Emirates stands out, representing more than 40 percent of this figure. China continues to be a vital trading partner, controlling 16 percent of the Arab commodity trade, signifying the deepening economic ties between the two regions.
Dhaman’s report also underscores remarkable advancements in intra-Arab trade, which has seen a significant increase of 16.6 percent, topping 0 billion. This intra-regional trade now represents 9 percent of total Arab trade, primarily flourishing among the Gulf States, Egypt, and Iraq.
Moreover, Dhaman is committed to enhancing trade openness and export diversification. The corporation plans to offer trade insurance services valued at billion by the end of 2024, positioning itself as a critical player in bolstering the region’s export capabilities and reducing dependency on imports.
With these developments, the future looks bright for Arab trade, serving not just as an economic lifeline but as a powerful engine for growth across the region. Stay tuned, as we track how these evolving trade dynamics will shape the economic landscape in the Arab world.
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