MANAMA, 16 July 2007 — Japan’s trade with the Gulf Cooperation Council (GCC) countries recorded a healthy growth of 26 percent in 2006 rising to $111.5 billion from $88.5 billion in 2005. Saudi Arabia emerged as the biggest trading partner, covering 37.5 percent of the total trade followed by the UAE, which accounted for 33.7 percent of the total trade, according to figures released by Japan External Trade Organization (Jetro) yesterday.
The increase in the average price of crude oil in 2006 by more than 25 percent greatly contributed to the steep increase in the total trade value, the general increase in Japan’s exports to the GCC countries is indicative of the strengthening of bilateral trade between Japan and the GCC block.
The trade surplus favoring the GCC states increased by 28.5 percent to $80.3 billion in 2006, with Saudi Arabia taking 40.6 percent of the total trade surplus, followed by the UAE with 31.8 percent.
Japan’s exports to the GCC countries grew by 19.5 percent in 2006, to $15.6 billion, compared to $13.1 billion in 2005. According to data, 76.2 percent of the total exports were machinery and equipment, valuing $11.9 billion, which is 16.7 percent higher in value compared to the value in 2005. Other exports included various manufactured goods, foodstuff, raw materials, mineral fuels and goods classified as re-export goods.
Saudi Arabia and the UAE were Japan’s largest and second largest export markets respectively for wristwatches in 2006 within the precision equipment category.
Japan’s imports from the GCC surged by 27.1 percent in 2006 to $95.9 billion, compared to $75.5 billion in 2005. Mineral fuels alone covered 98.9 percent of Japan’s imports from the GCC countries, leaving the remaining small portion to semi-finished aluminum. Other imports were insignificant.
As a whole, the GCC bloc met 76.9 percent of Japan’s crude oil needs during the year 2006, with Saudi Arabia the largest supplier, making available 32.2 percent of the total requirement, and the UAE with 26.1 percent. The average price of crude oil in 2006 jumped by 25 percent to $64.1 per barrel compared with $51.3 per barrel in 2005.
