Arab Trade Surpasses $3.6T in 2024 with Notable Growth in Imports and Exports

In 2024, Arab merchandise and service trade experienced a notable surge of 4.5%, surpassing $3.6 trillion. This growth was driven by increasing exports, which reached $1.9 trillion (up 1.7%), and a more significant rise in imports, which climbed 7.8% to exceed $1.7 trillion, resulting in a narrower trade surplus.

Merchandise trade alone saw growth of over 5%, totaling $2.8 trillion. Commodity exports saw a slight increase of 0.3% to $1.5 trillion, while imports surged by 11% to more than $1.3 trillion, indicating a growing regional consumption of manufactured products. Despite these increases, the trade surplus contracted by 43% to $167 billion.

Arab nations now represent 5.6% of global merchandise trade and 13.1% of trade among developing countries. Raw materials dominated exports at 73%, with fuel contributing 54% to the total merchandise exports. Meanwhile, manufactured goods dominated imports, making up 64%, reflecting ongoing consumer and industrial demand.

Trade remains concentrated geographically, with three Gulf countries, Egypt, and Iraq accounting for 76% of merchandise trade. The UAE alone makes up over 40%, underscoring its pivotal role in regional trade. China continued to be the largest trading partner, responsible for 16% of total Arab trade.

Inter-Arab trade showed significant improvement, rising by 16.6% to exceed $250 billion, which constitutes 9% of total Arab trade. This growth was primarily observed among Gulf nations, along with Egypt and Iraq, that together accounted for 88% of inter-Arab transactions.

Trade performance indicators revealed a mixed landscape. While parameters such as openness, export diversity, and fleet capability improved, indicators related to export capacity and maritime connectivity saw slight declines, highlighting a dependence on imports.

This data illustrates a region that is not only expanding in trade but is also adjusting its economic priorities, thereby presenting both growth opportunities and challenges in self-reliance and connectivity.