Greater Arab free trade Higher hydrocarbon prices boost surplus

Ro u g h ly h a lf o f sa u d i e xp o rts to th e re

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Unformatted text preview: tra d e is d o min a te d b y Sa u d i e xp o rts . Ro u g h ly h a lf o f Sa u d i e xp o rts to th e re g io n a re o il-re la te d a n d mu ch o f th e re ma in d e r a re re la te d to d o w n s tre a m h yd ro ca rb o n in d u s trie s , s u ch a s p e tro ch e mica ls , p la s tics , ru b b e r a n d ch e mica ls . Sa u d i Ara b ia is a ls o a n imp o rta n t re g io n a l s o u rce o f ma n u fa ctu re d g o o d s a n d fo o d w ith to ta l fo o d e xp o rts o f $ 3 b illio n , ma in ly to th e o th e r GC C co u n trie s . As a g lo b a l tra d e h u b , th e UAE is ke y to in tra -re g io n a l tra d e . It is th e s e co n d la rg e s t e xp o rte r to o th e r GAFTA co u n trie s -- n o n -h yd ro ca rb o n s a cco u n t fo r a ro u n d 6 0 p e rce n t o f UAE g lo b a l e xp o rts . Th e UAE a ls o imp o rts mo re fro m w ith in th e re g io n th a n a n y o th e r co u n try, ma in ly fro m O ma n , Sa u d i a n d Su d a n . Ho w e ve r, a ro u n d 3 8 p e rce n t o f e xp o rts fro m th e UAE a re re -e xp o rts , ma in ly fro m co u n trie s o u ts id e GAFTA. Th is s u g g e s ts th a t a t le a s t US$ 8 b n o f in tra -re g io n a l tra d e is , in fa ct, o rig in a lly s o u rce d fro m o u ts id e GAFTA, o n ly p a s s in g th ro u g h th e UAE . Simila rly, th e b u lk o f Sa u d i Ara b ia 's re -e xp o rts (e s tima te d a t a ro u n d $ 7 b illio n fo r 2 0 1 2 ) a re p ro b a b ly d ire cte d to GAFTA. Th e s e re -e xp o rts co mp lica te e ffo rts to me a s u re g e n u in e in te r-re g io n a l tra d e . Th e UAE a cco u n ts fo r th e tw o o f th e s tro n g e s t b ila te ra l tra d in g re la tio n s h ip s in th e re g io n , co n d u ctin g $ 1 2 b illio n o f tra d e w ith O ma n (a ro u n d 6 p e rce n t o...
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