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Sharjah’s trade with GCC grows 77.5% in 2008

SHARJAH - Sharjah’s trade exchange with the Gulf Cooperation Council (GCC) Countries recorded phenomenal growth of 77.5 percent in 2008 to reach AED8.556 billion, up from the AED4.819 billion achieved in 2007, according to a report issued recently by the Sharjah Economic Development Department (SEDD).

”This record growth shows unprecedented improvement in the level of GCC trade exchange and activation of GCC economic integration in the face of other global economic alliances”, the report said.

”Liberation of inter-GCC trade exchange is a common target and strategy which will make the GCC countries, after a globalization period, an economic alliance that needs some support to compete other international economic alliances. The GCC alliance is leading the way to other experiences in Arab countries, taking into consideration that expanding scope of cooperation and coordination will boost competitiveness on international scale,” it added.

According to the report, KSA led the way in terms of volume for Sharjah-GCC trade exchange in 2008, accounting for 37 percent of the total, up from 31 percent in 2007. The value of the trade exchange between Sharjah and KSA was AED3.152 billion in 2008, a 109 percent increase as compared to the AED 1.506 billion reported in 2007, reflecting the increasing interest shown by KSA investors in Sharjah’s investor-friendly climate.

Nationalization of industries in Sharjah has contributed significantly to increasing the volume of trade exchange between Sharjah and KSA, and the Kingdom has become a major strategic partner for Sharjah in the areas of consumer goods, capital goods and other service goods. Saudi investment in the region, mainly in dedicated industrial cities, has proved its feasibility and strength, said the report.

Kuwait was the second largest trade exchange partner for Sharjah among the GCC countries in 2008, with the value of trade exchange between the two amounting to AED1.689 billion, or 20 percent of the total Sharjah-GCC trade exchange, marking an increase of 53 percent as compared to 2007 figures.

The report also discussed aspects and fields of trade exchange between the emirate of Sharjah and GCC countries, focusing on re-export. According to the study, KSA topped the list of GCC countries in terms of re-export inter trade with Sharjah at a value of AED2.327 billion, accounting for 33 percent of the total Sharjah-GCC re-export activities, and 74 percent of the total trade exchange between Sharjah and the kingdom.

Kuwait also came in the second place in terms of the relative importance of re-export with Sharjah, with re-exports from the country valued at nearly Dhs1.511 billion, accounting for 21 percent of the total re-export trade, and showing growth of 101 percent from 2007.

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