GCC-UK Trade Decline: Implications for Investors and Businesses in Oman
Muscat: The trade exchange between the Gulf Cooperation Council (GCC) countries and the United Kingdom saw a significant decline of 13.86% in 2023 compared to the previous year, as indicated by recent data from the GCC Statistics Center.
Total trade between the two regions amounted to $31.7 billion in 2023, reflecting a $5.1 billion decrease from the $36.8 billion recorded in 2022.
Exports from the GCC to the UK dropped dramatically by 29%, totaling $15.6 billion, down from $21.9 billion in 2022. The bulk of these exports consisted of mineral fuels, oils, and waxes, which accounted for 70.5% of the total, valued at $11 billion. Miscellaneous items followed, making up 11.6% at $1.8 billion.
Machinery and mechanical appliances represented 6.4% of exports, valued at $1 billion, while precious stones and metals constituted 5.1% at $0.8 billion. Exports of aircraft, spacecraft, and parts made up 3.8%, approximately $0.6 billion, with electrical machinery and equipment accounting for 2.6%, valued at $0.4 billion.
In contrast, imports from the United Kingdom to the GCC experienced an 8.3% increase, reaching $16.1 billion in 2023, compared to $14.9 billion the previous year.
Miscellaneous items dominated these imports, valued at $6.2 billion (38.5%), followed by machinery and mechanical appliances at $4.0 billion, representing 24.8% of total imports. Vehicles and vehicle parts accounted for 19.3%, equating to $3.1 billion, while electrical machinery and equipment represented 6.8% at $1.1 billion.
Imports of precious stones and metals made up 5.6% of total imports, valued at $0.9 billion, while aircraft, spacecraft, and parts constituted 5%, with a value of $0.8 billion.
In 2023, the United Kingdom ranked 11th among the GCC’s trading partners, a drop of two positions from 9th in 2022.
Special Analysis by Omanet | Navigate Oman’s Market
The 13.86% decline in Gulf Cooperation Council (GCC) trade with the UK signals significant challenges for businesses reliant on this partnership, particularly in mineral fuels. For smart investors, now may be the time to diversify into sectors and markets that exhibit growth, as reliance on declining exports can pose substantial risks. Additionally, with imports from the UK increasing, opportunities may exist in sectors such as machinery and appliances, suggesting a shift in strategic sourcing and partnerships.
