In an achievement that reflects the strength and resilience of their growing economies, the foreign trade of merchandise of the Gulf Cooperation Council (GCC) countries recorded a historic level in 2024, with its volume jumping by 7.4% to reach approximately US$1.6 trillion, compared to US$1.5 trillion in 2023. This figure, announced by the GCC Statistical Center, is the highest in the history of the economic bloc during the period from 2017 to 2024, confirming the pivotal role that the region plays in the global trade map.
Historical background and path towards economic diversification
Since its establishment in 1981, the Gulf Cooperation Council (GCC) has sought to achieve economic integration among its members (Saudi Arabia, the United Arab Emirates, Kuwait, Qatar, Bahrain, and Oman). While these countries' economies have historically relied on oil and gas exports, they have launched ambitious strategic plans and visions over the past decade, such as Saudi Arabia's Vision 2030 and the UAE's Vision 2071, aimed at diversifying their sources of income and reducing their dependence on hydrocarbon resources. Current foreign trade figures demonstrate the success of these policies in strengthening non-oil sectors and making them major contributors to economic growth.
2024 Business Performance Details: Growth Driven by Non-Oil Exports
Detailed data revealed that the total value of merchandise exports from the GCC countries reached approximately $850 billion in 2024, representing an annual growth rate of 3.4%. The primary driver of this growth was the significant increase in non-oil exports by 22.5%, coupled with a 1.4% rise in re-exports. Conversely, oil and gas exports experienced a slight decline of 1.8%, indicating a positive structural shift in the GCC's export landscape.
On the import side, the GCC countries recorded strong growth of 12.3%, reaching a value of approximately $740 billion. As a result, the merchandise trade balance achieved a surplus of $110 billion. Although this is lower than in 2023, it still places the GCC countries fifth globally in terms of trade surplus size, confirming their continued export strength.
Trading Partners Map: Asia consolidates its position as a strategic partner
Asian economic powers maintained their position as the most important trading partners for the GCC countries, reflecting the depth of economic ties and the ongoing shift towards the East. The following countries topped the list:
- China: ranked first with a trade volume of $299 billion (18.8%).
- India: came in second with a trade volume of $158 billion (9.9%).
- Japan: ranked third with a trade volume of $114 billion (7.2%).
- The United States of America: came in fourth place with approximately $89 billion (5.6%).
- South Korea: Ranked fifth with approximately $88 billion (5.5%).
These five countries collectively accounted for 47% of the GCC's total trade, highlighting the strategic importance of these partnerships. China is the largest trading partner in terms of both exports and imports, reinforcing its role as a major destination for Gulf products and a key source of industrial and technological goods.
Global Importance and Influence: The Gulf as an Influential Trading Power
This outstanding performance not only strengthens the local economies of the Gulf states but also elevates the GCC's standing as an influential economic bloc on the international stage. The GCC has advanced to fifth place globally in terms of merchandise trade volume, accounting for 3.2% of global trade. This improvement from sixth place the previous year underscores the region's growing role as a vital logistics and trade hub connecting East and West, and a key player in the stability of global supply and energy chains.
Growth in intra-regional trade strengthens Gulf integration
Growth was not limited to trade with the rest of the world; intra-GCC trade also witnessed remarkable growth of 9.8%, reaching $146 billion in 2024, its highest level ever. The UAE and Saudi Arabia led the way, together accounting for approximately 75.8% of total intra-GCC trade, reflecting their role as key drivers of regional trade and reinforcing the steps toward joint Gulf economic integration.
