Sharjah-GCC trade posts record growth of 77.5%

Sharjah's trade exchange with the Gulf Co-operation Council (GCC) countries recorded a phenomenal growth of 77.5 per cent in 2008 to reach Dh8.556 billion, up from the Dh4.819bn 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. "Freeing up of inter-GCC trade is a common target and strategy… which will make the Gulf Co-operation Council countries an economic alliance to reckon with. "The GCC alliance is leading the way for other Arab countries to follow, taking into consideration the expanding scope of co-operation and co-ordination to boost competitiveness on an international scale," it said. According to the report, Saudi Arabia led the way in terms of volume for Sharjah-GCC trade exchange in 2008, accounting for 37 per cent of the total, up from 31 per cent in 2007. The value of the trade exchange between Sharjah and Saudi Arabia was Dh3.152bn in 2008, a 109 per cent increase compared to Dh1.506bn in 2007, reflecting the increasing interest shown by Saudi investors in Sharjah. Nationalisation of industries in Sharjah has contributed significantly to increasing the volume of trade exchange between Sharjah and Saudi Arabia, and the Kingdom has become a major strategic partner for Sharjah in the areas of consumer goods, capital goods and other services. 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 Dh1.689bn, or 20 per cent of the total Sharjah-GCC trade exchange, marking an increase of 53 per cent compared to the 2007 figures. The report also focused on re-exports. According to the study, Saudi Arabia topped the list of GCC countries in terms of re-export with Sharjah at a value of Dh2.327bn, accounting for 33 per cent of the total Sharjah-GCC re-export activities, and 74 per cent of the total trade exchange between Sharjah and the Kingdom. Kuwait came in the second place in terms of re-export with Sharjah, with re-exports from the country valued at nearly Dh1.511bn, accounting for 21 per cent of the total re-export trade, and showing a growth of 101 per cent from 2007. Keep up with the latest business news from the region with the Emirates Business 24|7 daily newsletter. To subscribe to the newsletter, please click here .