KARACHI: Saudi Arabia and Pakistan on Saturday discussed unlocking the full potential of their strategic relationship, as the finance chiefs of both countries met ahead of the Emerging Markets Conference in AlUla, Saudi Arabia, according to an official statement.
Pakistan’s Finance Minister Muhammad Aurangzeb arrived in the Kingdom to attend the two-day conference, which begins on Sunday, at the invitation of his Saudi counterpart Mohammed Al-Jadaan.
The annual economic policy forum is organized by the Saudi finance ministry in collaboration with the International Monetary Fund (IMF) regional office in Riyadh. The event will bring together emerging market finance ministers, central bank governors, policymakers, public and private sector leaders, international institutions and academics.
“The meeting [between the two finance chiefs] underscored a shared commitment to build bridges of economic cooperation and advance mutual prosperity,” Pakistan’s finance ministry said in a statement after Aurangzeb’s interaction with Al-Jadaan.
“The discussions highlighted opportunities for enhancing bilateral trade, investments and financial collaboration, with both ministers expressing their dedication to unlocking the full potential of their countries’ strategic partnership,” it added.
Pakistan is navigating a fragile economic recovery under a $7 billion IMF loan program secured in September 2024, after implementing austerity measures and policy reforms to avert a sovereign default in 2023.
To facilitate Pakistan’s economic recovery, Saudi Arabia signed 34 memorandums of understanding (MoUs) worth $2.8 billion last October to boost private sector investment in key areas, including energy, infrastructure and technology.
During their meeting, the two ministers explored avenues for collaboration in infrastructure, energy, technology and finance, emphasizing the need for continued dialogue and joint initiatives to facilitate investment flows and economic opportunities that could benefit the broader region.
According to an earlier statement by Pakistan’s finance ministry, Aurangzeb is scheduled to participate in a high-level panel discussion titled “The Path to Emergent Markets,” hosted by IMF Managing Director Kristalina Georgieva.
The conference will feature nine sessions, with 200 participants and 36 speakers, focusing on economic resilience, financial policies for emerging markets and global economic challenges.
The discussions come at a time when the world economy is facing persistent shocks, trade tensions between major world powers, geopolitical instability and tight financial conditions.
“The conference will provide a unique platform for world leaders to discuss and analyze domestic, regional and global economic conditions and developments and to exchange ideas on solutions to global challenges,” the Pakistani finance ministry added.
Pakistani and Saudi finance chiefs discuss boosting strategic ties ahead of AlUla conference
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Pakistani and Saudi finance chiefs discuss boosting strategic ties ahead of AlUla conference
- Muhammad Aurangzeb brings up enhanced bilateral trade, investments and collaboration with his counterpart
- The ministers emphasize the need for continued economic dialogue, increased cooperation through joint initiatives
GCC countries’ merchandise foreign trade volume reaches $1.6tn: GCC Stat
RIYADH: Gulf Cooperation Council countries’ merchandise foreign trade volume, excluding trade among themselves, increased by 7.4 percent in 2024 to reach $1.6 trillion, according to the GCC Statistical Center.
This compares to $1.5 trillion in 2023 and marks the highest level recorded in its history during the period from 2017 to 2024.
The data, which the Center compiles regularly in cooperation with national statistical centers and agencies in the member states, showed that the total value of merchandise exports reached about $850 billion in 2024, compared to roughly $821 billion in 2023, an increase of about 3.4 percent.
The Center indicated that this growth is attributed to a 22.5 percent rise in non-oil exports and a 1.4 percent increase in re-exports, while exports of oil and natural gas declined by 1.8 percent.
Conversely, merchandise imports recorded a notable increase, reaching approximately $740 billion in 2024, compared to about $659 billion the previous year, a growth of 12.3 percent.
As a result, the merchandise trade balance achieved a surplus estimated at about $110 billion in 2024, compared to a surplus of about $162 billion in 2023, recording a decline of 32.4 percent. This decrease was due to imports growing at a faster pace than exports.
China leads
According to 2024 data, China, India, and Japan topped the list of the GCC’s main trading partners. These are the same three countries that maintained their order from the previous year, 2023.
Collectively, they accounted for about 36 percent of the GCC’s total merchandise trade exchange with the world, confirming the pivotal position of the Asian continent in the structure of Gulf global trade.
China ranked first with an exchange volume of about $299 billion, or 18.8 percent. India followed with a volume of about $158 billion, or 9.9 percent, a difference of roughly $141 billion.
Japan came third with about $114 billion, or 7.2 percent. The US placed fourth with an exchange volume of nearly $89 billion, or 5.6 percent, followed by South Korea with about $88 billion, or 5.5 percent, recording noticeable growth compared to the previous year.
Notably, the top five countries together accounted for about 47 percent of the GCC’s total merchandise trade exchange in 2024, highlighting the depth of strategic trade links between the GCC and these major Asian and American economies.
The data also showed that China maintained its position as the largest trading partner for GCC exports, with a value of about $137 billion, representing 16.2 percent of total exports.
It was followed by India with about $103 billion, or 12.1 percent, then Japan with $83 billion, or 9.8 percent, and South Korea with $74 billion, or 8.7 percent. Iraq came in fifth place with about $36 billion, or 4.2 percent.
These top five destinations for exports accounted for about 51 percent of the GCC’s total exports in 2024, with a total value estimated at $433 billion, confirming the importance of Asian markets as key destinations for Gulf exports.
For merchandise imports, China continued to lead the list of trading partners, with import values reaching about $161 billion, or 21.8 percent. It was followed by the US with $57 billion, or 7.8 percent, then India with $55 billion, or 7.4 percent.
The top five sources for imports accounted for about 45 percent of the GCC’s total imports in 2024, valued at roughly $331 billion. This indicates the GCC’s reliance on its key partners in Asia and the US to meet its needs for industrial and technological goods, while it continues its role as a major supplier of energy and raw materials to global markets.
These indicators reinforce Asia’s position as a primary hub for Gulf trade, both in terms of export flows and import diversity, cementing the ongoing shift toward strengthening economic partnerships between GCC countries and major Asian markets.
GCC showing its trading power
The 2024 data confirmed that the GCC maintained its position among the world’s largest trading economies, ranking fifth globally in terms of merchandise trade exchange volume.
This distinguished performance elevated the GCC from sixth place in 2023 to fifth in 2024, affirming its growing stature in the international trade system and its pivotal role in global supply and energy chains.
The data showed that the Council maintained fifth place globally for total merchandise exports, with a value of about $850 billion, equivalent to 3.5 percent of the global total, reinforcing its position as a major exporter in international merchandise trade.
Conversely, the GCC advanced to eighth place globally for total merchandise imports, up from ninth place the previous year, as the value of imports rose to about $740 billion, a growth of 12.3 percent, the highest growth rate among the world’s top ten economies.
Regarding the merchandise trade balance surplus, it reached about $110 billion in 2024, placing the GCC fifth globally, despite a 32.4 percent decline compared to the previous year due to a slight decrease in exports alongside faster import growth.
Despite this relative decline, the GCC retained its position among the top five economies with a global trade surplus, confirming its continued status as one of the most prominent players in international merchandise trade.
GCC foreign trade statistics indicated that the volume of trade among member states, measured by total intra-GCC merchandise exports, reached about $146 billion in 2024, recording growth of 9.8 percent compared to about $133 billion in 2023.
This growth was attributed to a 3.7 percent increase in the value of national non-oil intra-GCC merchandise exports, reaching about $45 billion in 2024 compared to $43 billion the previous year, in addition to a 1.5 percent rise in intra-GCC oil and gas exports to $33 billion compared to $32.7 billion in 2023.
Re-exported goods witnessed strong growth of 19.1 percent, rising from $57 billion in 2023 to about $68 billion in 2024, which contributed significantly to boosting the volume of intra-GCC merchandise trade.
Data showed the development of intra-GCC merchandise trade during the period 2017–2024, ranging from $78 billion in 2017 and peaking at $146 billion in 2024— the highest level ever recorded.
A sharp decline of 12.7 percent is noted for 2020 due to the impacts of the COVID-19 pandemic, before returning to a consistent upward trajectory in subsequent years.
Regarding the contribution of member states to the volume of intra-GCC merchandise trade in 2024, the UAE ranked first with a contribution of about $69.9 billion, or 47.9 percent of the total, compared to $66.5 billion in 2023, recording growth of 5.1 percent.
Saudi Arabia came second with a value of $40.7 billion, or 27.9 percent of the total, compared to $34.7 billion the previous year, achieving growth of 17.2 percent.
Kuwait and Qatar tied for third place, each contributing $10.2 billion, or 7.0 percent of the total each, compared to $6.2 billion for Kuwait and $7.4 billion for Qatar in 2023. This represented strong growth of 64.5 percent for Kuwait and 37.8 percent for Qatar.
Oman ranked fifth with a value of about $7.9 billion, or 5.4 percent of the total, compared to $8.3 billion in 2023, recording a slight decline of 4.2 percent. Bahrain came sixth with a value of $7.1 billion, or 4.9 percent of the total, compared to $9.9 billion the previous year, a decrease of 28.1 percent.
The data showed that the UAE and Saudi Arabia together accounted for about 75.8 percent of the GCC’s total intra-GCC trade in 2024, reflecting a clear concentration of intra-GCC trade activity in these two countries, which represent the main engine for regional trade movement.
