Kuwait - Mubasher: Arab trade in goods grew by 31.6% to exceed the $2 trillion barrier during 2021, as a result of the growth of exports by 42.4% to $1.2 trillion, and imports by 19.8% to $897 billion .
The Arab Corporation for Investment and Export Credit Guarantee "Daman" said in a statement today, Thursday, that this boom in Arab commodity trade last year was supported by the improvement of the epidemiological situation in the region.
She pointed out that the reasons are also due to the return of economic activity, the easing of restrictions on the movement of goods and the increase in the value of Arab exports, especially of oil, coinciding with the rise in the average price of a barrel to 67.3 dollars during the same year .
The Corporation stated that Arab merchandise trade represented about 4.6% of the global total, and about 10.8% of the total merchandise trade in developing countries. In terms of commodity distribution, raw materials of all kinds still represent the largest share of the total commodity exports of Arab countries, at a rate of more than 72%. Fuel exports alone represented about 56 percent of the total.
On the other hand, manufactured goods accounted for the largest share of total merchandise imports with a 64.2 percent share during 2021, with 5 Arab countries contributing more than 77% of the region's total exports.
While 5 countries accounted for about 72% of their total merchandise imports, while the UAE and Saudi Arabia accounted for 56.2% of Arab merchandise trade for the same year .
In terms of trading partners, the top 10 exporting countries to the region accounted for 61.2% of the region's total merchandise imports, while the top 10 importing countries from the region accounted for 56.4% of its merchandise exports .
As for the inter-Arab trade in goods, it rose by 27% to reach $358 billion during 2021, representing 17.4% of the total Arab merchandise trade, with its concentration in the Gulf Cooperation Council countries and Egypt with a share of 84% of the total .
According to the bulletin's data, Arab trade in goods and services is expected to continue to grow during 2022, at a rate of 31.6% to reach $3 trillion; According to IMF estimates, driven by the expected record growth of exports, especially fuel exports.
It is noteworthy that the Arab Corporation for the Guarantee of Investment and Export Credit "Daman" was established in 1974 and is headquartered in the State of Kuwait, as a multilateral institution whose membership includes all Arab countries and four joint Arab financial institutions.
The Corporation provides specialized insurance services against credit and political risks; With the aim of facilitating the flow of foreign direct investment to Arab countries and supporting Arab exports and imports .