US exports to Arab states to reach $75bn in 2010
Published: Apr 8, 2010 03:58 Updated: Apr 8, 2010 04:35
DOHA: At a high-level conference in Doha, the National US-Arab Chamber of Commerce (NUSACC), widely regarded as the voice of American business in the Arab world, said on Wednesday that 2010 would be a record-breaking year for sales of US goods and services to the Arab world. American exports to the region are expected to rebound to nearly $75 billion this year, notes the chamber's report, US-Arab Trade Outlook: 2010, up from $63 billion in 2009. This is an increase of almost 20 percent over last year, propelling US exports to the Middle East and North Africa (MENA) to an all-time high.
"Our research suggests that in 2010, the Middle East and North Africa will play a significant role in the global economic recovery," says David Hamod, president and CEO of the US-Arab Chamber. "This is very good news for the US economy in general and for American exporters to the MENA region in particular. This turnaround also bodes well for job creation in the United States, translating into 740,000 American jobs created or sustained this year by US exports to the Arab world alone."
Total market demand in the Arab world is expected to grow 12 percent in 2010, to $796 billion. The top five Arab export markets for the United States in 2010 are slated to be the UAE ($22.23 billion), Saudi Arabia ($17.04 billion), Egypt ($6.13 billion), Iraq ($5.47 billion), and Qatar ($5.05 billion).
The trade outlook indicates that US exports to the region are on track to more than double by the year 2015. This will provide an important boost to US President Barack Obama's National Export Initiative, which calls for doubling exports to $3 trillion over the next five years in order to support two million new jobs for Americans.
According to Obama, who is quoted in the report, "In a time when millions of Americans are out of work, boosting our exports is a short-term imperative. Our exports support millions of American jobs. We have to be able to compete in the global market . . . [and] it has never been as important an opportunity for America as it is now."
The NUSACC report was released during a conference in Doha entitled "Outlook 2010: Leading the Next 30 Years." President & CEO David Hamod spoke at the conference, which was hosted by the Federation of GCC Chambers of Commerce and Industry.
The chamber's research affirms that there are significant US export opportunities across the Arab world. Infrastructure build-out will continue to be the most significant driver behind foreign investment and exports to the region, particularly in the GCC nations. The countries of the Arabian Gulf are making huge investments in upstream and downstream energy projects, power generation, water and waste treatment, ports and airports, roads and rail, hospitals and schools. Big-ticket projects like these also open doors for related US service providers, including those offering such cross-border services as logistics, engineering, training, and a wide array of other professional services.
The trade outlook also highlights some of the region's key trends and sectors beyond infrastructure build-out, including investment in interconnectivity, consumer trends, education services, travel and hospitality services, free trade agreements, and security and defense plans.
All 22 nations of the Arab world are profiled in the chamber's report. For each country, the report offers three important tables - Imports, exports and GDP comparisons over a five-year period; "Top Ten" export sectors in each nation; "Sectors to Watch," which focuses on niche opportunities that are particularly attractive to small and medium-sized enterprises in the United States.
The Arab world is a high growth market of over 300 million consumers, and the trade outlook quantifies a broad recovery in consumer confidence over the past year. The most upbeat consumers are in the GCC - in Qatar, the UAE, and Saudi Arabia, respectively, and this consumer confidence is translating into increased purchases of US goods and services.
"In 2009, deficit spending and big-ticket infrastructure projects ensured healthy growth in many industrial sectors, but businesses that depend heavily on consumer spending took a hit as shoppers around the world cut back on purchases," said Hamod. "2010 is off to a great start, and we are looking forward to record sales for US exporters to the Arab world in the months ahead."
