Gulf's US$520bn trade surplus largest in world - Banking & Finance - ArabianBusiness.com
The Gulf's US$520bn trade surplus last year was the biggest in the world and almost twice that of nearest competitor China, according to new research.
The region's extensive hydrocarbon resources meant its exports generated a healthy trade surplus, with Saudi Arabia accounting for nearly half of the US$520bn cash mountain.
The kingdom contributed a surplus of US$245bn, while the UAE added US$94bn and Qatar US$79bn, according to analysis from lender QNB Group.
The current surplus is twice the size of the country with the next largest surplus, China, and is also about two-thirds the size of the US's trade deficit.
However, QNB Group forecasts that the surplus is likely to fall to around US$493bn in 2012-13, as imports grow around 3.5 percent.
The study found that the bulk of trade from the Gulf was with two countries: Japan and South Korea.
Japan has been the main trade partner for decades, purchasing 16 percent of Gulf exports and supplying six percent of imports in 2010, according to IMF data. South Korea was next in the rankings and responsible for ten percent of exports and four percent of imports.
Half the GCC trade surplus in 2010 was a result of trade with these two countries, the QNB Study said.
GCC trade with India has also risen tremendously, up from two percent of total trade in 2011 to 11 percent in 2010.
"India was both the fastest growing import source and export destination for the GCC in 2006-10, with annual growth of 27 percent and 55 percent respectively," the study found.
Similarly, Chinese trade has risen from four percent of total trade in 2001 to ten percent in 2010.
Looking to the future, the study forecast that the most "likely changes in trade flows compared to 2010 is that Japan's share of exports from the GCC will rise even further, as it imports more hydrocarbons as a result of the closure of nuclear power stations."
The Gulf's US$520bn trade surplus last year was the biggest in the world and almost twice that of nearest competitor China, according to new research.
The region's extensive hydrocarbon resources meant its exports generated a healthy trade surplus, with Saudi Arabia accounting for nearly half of the US$520bn cash mountain.
The kingdom contributed a surplus of US$245bn, while the UAE added US$94bn and Qatar US$79bn, according to analysis from lender QNB Group.
The current surplus is twice the size of the country with the next largest surplus, China, and is also about two-thirds the size of the US's trade deficit.
However, QNB Group forecasts that the surplus is likely to fall to around US$493bn in 2012-13, as imports grow around 3.5 percent.
The study found that the bulk of trade from the Gulf was with two countries: Japan and South Korea.
Japan has been the main trade partner for decades, purchasing 16 percent of Gulf exports and supplying six percent of imports in 2010, according to IMF data. South Korea was next in the rankings and responsible for ten percent of exports and four percent of imports.
Half the GCC trade surplus in 2010 was a result of trade with these two countries, the QNB Study said.
GCC trade with India has also risen tremendously, up from two percent of total trade in 2011 to 11 percent in 2010.
"India was both the fastest growing import source and export destination for the GCC in 2006-10, with annual growth of 27 percent and 55 percent respectively," the study found.
Similarly, Chinese trade has risen from four percent of total trade in 2001 to ten percent in 2010.
Looking to the future, the study forecast that the most "likely changes in trade flows compared to 2010 is that Japan's share of exports from the GCC will rise even further, as it imports more hydrocarbons as a result of the closure of nuclear power stations."
