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GCC’s Total Foreign Merchandise Trade Value Reaches $1.146 Tn

Foreign merchandise trade of the GCC countries is on the rise with the growth of exports (Asharq Al-Awsat)
Foreign merchandise trade of the GCC countries is on the rise with the growth of exports (Asharq Al-Awsat)
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GCC’s Total Foreign Merchandise Trade Value Reaches $1.146 Tn

Foreign merchandise trade of the GCC countries is on the rise with the growth of exports (Asharq Al-Awsat)
Foreign merchandise trade of the GCC countries is on the rise with the growth of exports (Asharq Al-Awsat)

The Gulf Cooperation Council (GCC) total international merchandise trade movement reached $1.146 trillion, compared to $840.7 billion in 2020, an increase of 36.4 percent.

The UAE and Saudi Arabia contributed about three-quarters of the volume of foreign merchandise trade, while the total merchandise exports in 2021 amounted to $668.6 billion, an increase of 52.5 percent compared to 2020.

The GCC Statistical Center revealed that national exports originating from GCC countries increased 57.2 percent to $564.4 billion, compared to 2020, while the value of re-exported goods saw a 30.9 percent increase to $104.2 billion in 2021.

The GCC’s merchandise balance surplus in 2021 increased 423.9 percent to $190.6 billion last year, compared to $36.4 billion in 2020.

Oil and its products accounted for 73.7 percent of GCC exports, amounting to about $415.9 billion in 2021, compared to $252.2 billion in 2020, with a growth rate of 64.9 percent over the previous year.

Other commodity exports from the GCC include plastics and its products at 5.9 percent, gold and precious stones at 5.4 percent, organic chemical products at 3.2 percent, and aluminum at 2.9 percent.

Machinery and electrical appliances represented 24 percent of the re-exported goods in the past year, to reach $25 billion, compared to $20 billion in 2020.

Other re-exports from the GCC include gold and precious stones at 25 percent, machinery and mechanical equipment at 11.8 percent, cars and vehicle parts at 10.2 percent, and oil and its products at 4.8 percent.

The gold and precious stones sector topped the list of imports with 16.2 percent, amounting to $77.2 billion, an increase of 46 percent compared to 2020, followed by machinery and electrical appliances at 13.2 percent, then machinery and automated equipment at 11.6 percent.

Other import products include cars and vehicle parts, accounting for nine percent, and pharmaceutical products, accounting for 3.4 percent.

China ranked first as GCC’s top trading partner in 2021 in total merchandise exports, accounting for 19.5 percent.

Last year, GCC’s exports to China reached $130.6 billion, compared to $71 billion in 2020, a growth of 83.9 percent, while India ranked second at 13.9 percent, followed by Japan at 11.5 percent, and South Korea at 5.9 percent.

In 2021, the GCC imported $98.3 billion in products from China, compared to $77.2 billion in 2020, an increase of 27.3 percent.

Total merchandise imports include the US at 8.6 percent, India at 7.5 percent, Japan at 4.6 percent, and Germany at 4.2 percent.

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The Future of Revenues in Syria: Challenges and Opportunities for the Interim Government

A money changer conducts a transaction in US dollars and Syrian pounds for a client on a street in Damascus (AFP)
A money changer conducts a transaction in US dollars and Syrian pounds for a client on a street in Damascus (AFP)
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The Future of Revenues in Syria: Challenges and Opportunities for the Interim Government

A money changer conducts a transaction in US dollars and Syrian pounds for a client on a street in Damascus (AFP)
A money changer conducts a transaction in US dollars and Syrian pounds for a client on a street in Damascus (AFP)

Syria faces significant challenges as discussions intensify about the post-Bashar al-Assad era, particularly in securing the necessary revenues for the Syrian interim government to meet the country’s needs and ensure its sustainability. The widespread destruction of the economy and infrastructure poses a dual challenge: rebuilding the nation while stimulating economic activity and ensuring sufficient financial resources for governance.

Currently, the interim government relies heavily on international and regional support during the transitional phase. Donor countries are expected to provide financial and technical assistance to help rebuild institutions and alleviate the suffering of the Syrian people.

However, as the country transitions, external support alone will not suffice. The government must identify sustainable revenue sources, such as managing natural resources, imposing taxes, and encouraging foreign investments.

Opportunities from the Syrian Diaspora

The Syrian diaspora is seen as a significant economic resource, contributing through remittances or involvement in reconstruction projects. However, realizing these opportunities requires the establishment of strong, transparent institutions, effective resource management, and a clear strategic plan to rebuild trust with both local and international communities.

Securing revenues for the interim government is not merely a financial challenge but also a test of its ability to lead Syria toward stability and prosperity.

Securing Economic Resources

Nasser Zuhair, head of the Economic and Diplomatic Affairs Unit at the European Policy Organization, stated that the interim government, currently led by Mohammed al-Bashir, may replicate its revenue-generating models from Idlib. Resources in Idlib were drawn from temporary measures that are insufficient for sustaining a national economy like Syria’s.

In an interview with Asharq Al-Awsat, Zuhair explained that these resources included taxation, fuel trade with Syrian Democratic Forces (SDF)-controlled areas, international aid for displaced persons in Idlib, remittances from the Syrian diaspora, and cross-border trade facilitated by Turkiye.

“The interim government believes that sanctions relief is a matter of months, after which it can begin to establish a sustainable economy. For now, it will rely on the same resources and strategies used in Idlib and other controlled areas,” Zuhair added.

Challenges and Opportunities

Despite the former regime’s reliance on illicit revenues, such as drug trafficking and Captagon production—estimated to account for 25% of government revenues—the interim government has several potential avenues for generating revenue.

International Aid

Zuhair emphasized that cross-border humanitarian aid indirectly supports local economies. “The current government understands that international and regional aid will be substantial in the coming period, particularly for refugee repatriation and infrastructure development,” he noted.

He added that efforts to secure funding from the Brussels Conference, which allocates about $7 billion annually to support Syria, will be critical. Strengthening ties with regional and European countries, such as Saudi Arabia, Kuwait, Germany, and the UK, is also a priority. However, securing such aid depends on establishing a political framework where Hayat Tahrir al-Sham (HTS) does not dominate governance.

He further noted that international and regional support will likely remain a key revenue source for the interim government, including humanitarian and developmental aid from organizations such as the United Nations and the World Bank.

Taxes and Tariffs

Zuhair highlighted taxes and tariffs as essential components of the government’s revenue strategy. This includes taxing local economic activities, customs duties on cross-border trade, and fair taxes on merchants and industrialists in major cities like Damascus and Aleppo.

“The government can also impose income, corporate, and property taxes while improving border management to maximize revenue from customs and tariffs,” he added.

Agriculture and Natural Resources

Syria’s vast and fertile agricultural lands present an opportunity for revenue generation, Zuhair underlined, explaining that taxes on agricultural products could contribute to state income. However, this sector faces logistical challenges and high production costs. By directing the agricultural sector toward self-sufficiency, the government could reduce dependence on imports and create surplus revenue, he remarked.

Additionally, managing natural resources such as oil and gas could provide a significant revenue stream if the government gains control over resource-rich areas like northeastern Syria, the official noted.

Reconstruction

Reconstruction presents another potential revenue source. International companies could be encouraged to invest in rebuilding efforts in exchange for fees or taxes. Public-private partnerships with local and foreign firms in sectors such as infrastructure and housing could also generate significant funds.

Remittances from the Diaspora

Zuhair stressed the importance of remittances from Syrians abroad, estimating that these transfers could reach $2 billion annually by 2025. Encouraging the diaspora to send funds to support family members and rebuild properties will be a key priority for the government.

Domestic Investments

The interim government has shown its ability to attract domestic investments in real estate, industry, commerce, and agriculture, despite international sanctions. According to Zuhair, leveraging Türkiye as an international gateway, the government could expand this model across Syria, taking advantage of the challenging economic conditions left by the previous regime to draw reasonable investments in its first year.

Tourism and Small Businesses

Revitalizing the tourism sector could directly contribute to revenue, he added, noting that restoring historical and cultural sites, once security and stability are achieved, will attract visitors and generate income.

In addition, encouraging small and medium-sized enterprises will help revive the economy and create jobs, Zuhair emphasized, pointing that supporting manufacturing industries could provide a sustainable revenue stream.