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Hajraf: Volume of Intra-GCC Trade Does Not Live Up to Expectations

Gulf officials at the 55TH meeting of the Federation of GCC Chambers hosted by the UAE from June 7-9, 2021 (Asharq Al-Awsat)
Gulf officials at the 55TH meeting of the Federation of GCC Chambers hosted by the UAE from June 7-9, 2021 (Asharq Al-Awsat)
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Hajraf: Volume of Intra-GCC Trade Does Not Live Up to Expectations

Gulf officials at the 55TH meeting of the Federation of GCC Chambers hosted by the UAE from June 7-9, 2021 (Asharq Al-Awsat)
Gulf officials at the 55TH meeting of the Federation of GCC Chambers hosted by the UAE from June 7-9, 2021 (Asharq Al-Awsat)

Gulf Cooperation Council (GCC) Secretary-General Dr. Nayef al-Hajraf said that the start of post-pandemic economic recovery requires joint efforts from both public and private sectors in GCC countries.

If Gulf states wished to preserve pre-pandemic gains and ensure their continued growth, public and private sectors must work together to advance the progress on the lifting of related restrictions and lockdowns, resuming commercial activities and reinforcing the surge in spending.

In his statement to the Emirates News Agency (WAM), on the sidelines of the 55th meeting of the Federation of GCC Chambers hosted by the UAE from June 7-9, 2021, Al Hajraf said that the value of trade between GCC countries exceeded $90 billion in 2019, which does not meet the aspirations of the GCC’s leaders and peoples.

There is an urgent need to encourage more trade between GCC countries, which constitute a market of over 58 million people with a combined GDP totaling some $1.590 trillion in 2019, he added while highlighting the private sector’s key role in increasing GCC trade.

He also affirmed the need to explore the challenges and obstacles facing the private sector in GCC countries, which are working together to overcome various challenges and create adequate appropriate solutions, to enhance the role of the private sector in supporting GCC exports.

He noted the ongoing cooperation between the GCC Secretariat-General and the Federation of GCC Chambers, which formed a high-level joint action team that holds regular meetings to discuss and monitor all related issues.

The previous consultative meeting of the heads of federations and chambers of GCC countries and ministers of commerce took place on Nov. 4, 2020, and there are ongoing meetings with members of the GCC Customs Union Authority, he noted.

Al-Hajraf further highlighted the keenness of the leaders of GCC countries to enhance their overall cooperation, most notably in economic and development areas and stressed the importance of prioritizing relevant strategic projects while expressing his appreciation for the significant efforts to hold the joint meeting.

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US Election Weighs on Markets

US Dollar banknotes are seen in this illustration picture taken June 14, 2022. (Reuters)
US Dollar banknotes are seen in this illustration picture taken June 14, 2022. (Reuters)
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US Election Weighs on Markets

US Dollar banknotes are seen in this illustration picture taken June 14, 2022. (Reuters)
US Dollar banknotes are seen in this illustration picture taken June 14, 2022. (Reuters)

The dollar softened and stocks fell on Monday as investors treaded carefully hours before the US presidential election, with a US Federal Reserve interest-rate cut also expected later in the week.

In the US presidential race, Democratic Kamala Harris and Republican Donald Trump remain virtually tied in opinion polls ahead of Tuesday's vote. It might not be clear who won for days after voting ends.

“Tuesday will shape the direction of the world economy and geopolitics for the next four years,” Deutsche Bank analysts wrote.

They cautioned that “there remains a large degree of uncertainty around both the result, including the very tight House (of Representatives) race, and when we will know it.”

Trump's policies on immigration, tax cuts and tariffs may put upward pressure on inflation, bond yields and the dollar, analysts say, while Harris is seen as the continuity candidate.

Uncertainty over the outcome is one reason markets assume the Federal Reserve will choose to cut rates by a standard 25 basis points on Thursday, rather than repeat its outsized half-point easing.

The Bank of England also meets Thursday and is expected to cut by 25 basis points, while the Riksbank is seen easing by 50 basis points and the Norges Bank is expected to stay on hold.

The Reserve Bank of Australia holds its meeting on Tuesday and again is expected to hold rates steady.

“Based on current data, we see no reason for (the Federal Open Market Committee) to rush through rate cuts,” said analysts at ANZ. “The election and uncertainty over the future fiscal path also support arguments for caution in recalibrating monetary policy.”

The euro extended an early climb to be up 0.5% at $1.0891 and looked set to test resistance around $1.0905. The dollar fell 0.6% on the yen to 152.60. The dollar index eased 0.1% to 103.80.

Dealers said the dip in the dollar might be linked to a poll that showed Harris taking a surprise 3-point lead in Iowa, thanks largely to her popularity with female voters.

“Markets are seemingly scaling back some Trump trades, and we suspect the next two days can see some abnormal swings in USD crosses due to tighter volatility conditions ahead of a closely contested and highly binary US election,” ING FX strategist Francesco Pesole said.

European stocks were flat, while oil prices climbed nearly 3% on Monday on OPEC+'s decision for a month's delay in plans to increase output, while investors also focused on the US presidential election.

British stocks outperformed continental indexes to add 0.5%, helped by the energy sector.

Earlier, MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.7%, recovering from its fall to a five-week low on Friday.

Chinese blue-chip stocks gained 1.4%, with the Shanghai Composite Index up 1.2%.

Wall Street also notched slim gains ahead of Tuesday's US election. Futures had the S&P 500 up 0.2% ahead of Monday’s opening bell, while the Nasdaq and Dow Jones were seen 0.1% higher respectively.

Bonds have rallied on Monday as a result of the latest swing in the polls, with yields on 10-year US treasuries down 10 basis points at 4.28%.