GCC non-hydrocarbon trade set for 3.5pc growth, says report
RIYADH, 12 hours, 3 minutes ago
Global trade patterns are transforming significantly as new economic corridors emerge and traditional relationships evolve with the GCC region playing an increasingly pivotal role in connecting major trade routes between East and West, according to a report by Boston Consulting Group (BCG).
The GCC's strategic location and expanding infrastructure position the region to capture value from these evolving trade dynamics, stated the report.
As per the new research from BCG, world trade in goods is projected to grow at an average of 2.9% annually through 2033, with the GCC region playing a vital role in this.
As global trade patterns shift, the GCC strengthens its position as a critical connector between East and West. This is evidenced by the broader transformation in global trade flows, where China's trade with the Global South is set to increase by $1.25T and trade between developing nations is projected to grow by $673 billion through 2033.
These insights are among the key findings of BCG's latest report, "Great Powers, Geopolitics, and the Future of Trade," which analyzes trade and economic data from more than 150 countries. The report comprehensively analyzes how shifting global trade dynamics will impact regional and international commerce through 2033.
The report also reveals a robust outlook for GCC trade, with total trade volume set to reach $2.3 trillion by 2033. This growth is supported by significant expansion across multiple trade corridors, with China emerging as the largest growth market at $88 billion (5.7% CAGR), followed by Japan at $46 billion (9.4% CAGR).
The analysis shows GCC's non-hydrocarbon trade will grow by 3.5% annually, highlighting the region's successful economic diversification efforts.
Rami Rafih, Managing Director and Partner at BCG, said: "The reconfiguration of global trade flows presents a pivotal moment for the GCC. As trade routes transform, the region isn't just a geographic intermediary but a central orchestrator of new patterns."
"The GCC's deliberate investment in capabilities positions it to achieve greater success through developing proactive and risk-based options rather than defaulting to reactionary responses. The key is leveraging this foundation to shape emerging trade corridors, particularly as Global South commerce evolves," he added.-TradeArabia News Service
