GCC-Thailand Trade Decrease of 50% in 2023: Implications for Investors and Businesses in Oman
MUSCAT: A recent report from GCC-STAT reveals that trade between the Gulf Cooperation Council (GCC) countries and Thailand fell sharply by 50% in 2023, totaling $20.3 billion, down from $40.6 billion in 2022. This significant decline represents a loss of $20.3 billion.
GCC exports to Thailand declined dramatically by 69.8%, amounting to $9.4 billion in 2023. Of this, 71.3% was attributed to petroleum and hydrocarbon products, valued at $6.7 billion. Miscellaneous exports accounted for 9.5%, worth $0.9 billion. Other notable exports included gold and precious stones at 6.4% ($0.6 billion), aluminum and related articles at 5.3% ($0.5 billion), fertilizers at 4.3% ($0.4 billion), and plastics and plastic products at 3.2% ($0.3 billion).
Conversely, imports from Thailand to the GCC increased by 14.9%, reaching $11 billion. Motor vehicles, wagons, and parts comprised 44.5% of these imports, totaling $4.9 billion. Miscellaneous imports accounted for 25.4% ($2.8 billion), while machinery and mechanical appliances made up 15.5% ($1.7 billion). Additionally, gold and precious stones, along with electrical machinery, each represented 5.5%, totaling $0.6 billion, while rubber and related articles amounted to 3.6% ($0.4 billion).
In 2023, Thailand ranked as the GCC’s 18th largest trading partner, a drop of ten positions from the previous year.
Special Analysis by Omanet | Navigate Oman’s Market
The significant decline in trade between the GCC and Thailand—down 50% in 2023—signals a potential risk for Oman, particularly in its reliance on hydrocarbon exports, which constitute a large portion of its trade. This presents an opportunity for diversification; businesses could pivot towards more robust sectors like technology and renewable energy. Smart investors should now consider exploring alternative markets and developing products that cater to shifting consumer needs, ensuring resilience against global trading fluctuations.
