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GCC-Africa trade relations poised for significant enhancement

A study shows that bilateral trade in goods between the GCC and Africa grew at a compound annual growth rate (CAGR) of eight percent over the ten years to 2022, with prospects of continued growth. The Economist Intelligence Unit (EIU) report highlighted a significant surge in bilateral trade value in 2021, reaching a record $154 billion in 2022. This positions the GCC ahead of the US ($74 billion) and India ($99 billion), while narrowing the gap with China ($289 billion) and Western Europe ($244 billion).

The primary exports from the GCC to Africa are oil and gas, while the mining sector remains a major import. However, trade in other sectors is expanding due to the GCC’s diversified investments in Africa, which exceeded $100 billion over the past decade. GCC greenfield FDI announcements in Africa hit $60 billion in 2022 and $53 billion in 2023, outpacing commitments from other regions. The UAE is particularly active, securing key transport infrastructure projects. The ICT sector is also a significant focus, aligning with the GCC's diversification goals.

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Posted on :7/10/2024