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The GCC Going East

THE GCC GOING EAST TRADE, INVESTMENT, WORKERS WHAT IS THE GCC? The Gulf Cooperation Council (GCC) KUWAIT QATAR UNITED ARAB EMIRATES BAHRAIN SAUDI ARABIA OMAN TRADE The economic rise of China and India as well as shifts in energy supply have moved the GCC's economic focus towards Asia TO CHINA TO INDIA FROM INDIA FRO Asia has become the GCC's most important trade partner for hydrocarbon exports, as well as imports of machinery, manufactured goods and food. OIL AND GAS RESERVES 33% The GCC holds more GCC OIL than 1/3 of the world's proven crude oil reserves and 22% of the world's proven natural gas reserves. 22% GCC GĀS Demand for energy in Asia more than doubled between 1990 and 2011. 280 MTOE 2000 ODE 1990 2000 4900 MTOE 6000 MTOE 2011 2020 IMPORT & EXPORT More than TO CHINA 40% NDIA of all GCC exports are now sent to Non-Japan Asia. India and China alone account for around 10% each. Asia has become increasingly dependent on oil from the Gulf countries. India and China obtain a large proportion of their oil imports from the GCC. 40% 30% INDIA CHINA GCC OIL Asia has also become the most important source of imports for the GCC. More than 35% of GCC imported goods now come from Non-Japan Asia. Imports from China and India alone account for almost 25%. 11.3% INDIA CHINA 12.3% INVESTMENT AND FINANCE Growing trade ties between the GCC and Asia have been accompanied by intensified bilateral investment. Asia's ever increasing energy demand, in particular from China, has fuelled investment in the Gulf region's hydrocarbon industry, infrastructure and other industries. At the same time, more access to rapidly growing Asian retail markets, energy, telecommunications and Islamic finance is helping the GCC to diversify its economies. The GCC is a major hub for Islamic finance, accounting for 42% of total Islamic assets worldwide in 2012. Interdependence between GCC and Asia, particularly Malaysia, in the Sukuk (Islamic bond) market is growing. EXPATRIATE WORKERS Up to 19 million non-nationals were estimated to be living in the GCC in 2012 – around 40% of the total population. GC QATAR SAUDI ARABIA 20% 85% 40% UAE OMAN 25% 85% BAHRAIN KUWAIT 50% 50% Share in total population Around 70% of expatriates working in the GCC come from developing Asia. Around 30% come from India. DEVELOPING ASIA INDIA 70% 30% Despite some socio-economic challenges, migrant workers contribute significantly to economic prosperity and development in the Gulf region. CONCLUSION PROS CONS CONS PROS 1. Increasing energy 1. Increasing interde- pendence also makes the GCC sensitive to demand from Asia is helping the GCC to sustain robust economic growth. economic developments and stability in Asia. 2. Access to fast-growing Asian markets is enabling GCC countries to diversify their economies away 2. The socio-economic challenges of high expatriate populations in the GCC will need from the hydrocarbon sector. to be addressed in a sustainable way. FULL REPORT ON DBRESEARCH.COM BIT.LY/GCCEAST

The GCC Going East

shared by DeutscheBank on Jun 24
Asia is now the GCC’s most important trade partner, both in terms of its hydrocarbon exports as well as imports of machinery, manufactured goods and food. Find out more about the GCC and it's links ...


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