Editor’s Note:
Exports from America to Saudi Arabia dipped from about $17.5 billion in 2008 to just under $16 billion in 2009, but are expected to bounce back this year according to a recent report of the National U.S.-Arab Chamber of Commerce (NUSACC). When we spoke with Chamber President David Hamod last October in a SUSRIS Exclusive Interview, he said that there has been consistent growth over the years and, despite the global downturn, which was reflected in Saudi imports, the Chamber anticipated U.S. exports to the Kingdom would surge to about $38 billion by 2012. Overall trade from the United States with the Arab countries this year is expected to rebound by about 20% compared to 2009 with the $75 billion in exports, an all-time high mark, sustaining 740,000 American jobs according to NUSACC.
So far the Chamber’s forecast for 2010 has been borne out by trade figures for the first few months of the year, as noted by Jadwa in the April 2010 “Chartbook.” It noted, “Imports through the ports were 18 percent higher in February than one year earlier, with consumer goods increasing by 26 percent and construction goods up by 37 percent. While this data is healthy, it is largely due to the slump in imports in late 2008 and early 2009.”
One area of concern is the prospects for U.S. market share in the Kingdom. The NUSACC report tracked an increase in the merchandise import market and the service import market as each being up about 2% in 2009 over 2009. However, while merchandise import market share is expected to hold steady at about twelve and one half percent, service import market share for the U.S. in the Kingdom is expected to slip from 17% to 15%.
Today, we are pleased to provide for your consideration the NUSACC report on U.S. exports to the Arab world — the Chamber announcement and a link to the complete report, contained in the “U.S.-Arab Trade Outlook: 2010.” We will also remind you about the major conference coming up in Chicago later this month, the “U.S.-Saudi Business Opportunities Forum” on 27-29 April.
U.S. Exports to the Arab World, on the Rebound, Expected to Reach $75 Billion in 2010 – Translating into 740,000 U.S. Jobs
U.S.-Arab Chamber of Commerce Releases 2010 Trade Forecast
DOHA, QATAR – April 7, 2010 – At a high-level conference in Doha, Qatar today, the National U.S.-Arab Chamber of Commerce (NUSACC) revealed that 2010 will be a record-breaking year for sales of U.S. goods and services to the Arab world. American exports to the region are expected to rebound to nearly $75 billion this year, notes the Chamber’s report, U.S.-Arab Trade Outlook: 2010, up from $63 billion in 2009. This is an increase of almost 20 percent over last year, propelling U.S. exports to the Middle East and North Africa (MENA) to an all-time high.
“Our research suggests that in 2010, the Middle East and North Africa will play a significant role in the global economic recovery,” says David Hamod, President & CEO of the U.S.-Arab Chamber. “This is very good news for the U.S. economy in general and for American exporters to the MENA region in particular. This turnaround also bodes well for job creation in the United States, translating into 740,000 American jobs created or sustained this year by U.S. exports to the Arab world alone.”
Total market demand in the Arab world is expected to grow 12 percent in 2010, to $796 billion. The top five Arab export markets for the United States in 2010 are slated to be the United Arab Emirates ($22.23 billion), Saudi Arabia ($17.04 billion), Egypt ($6.13 billion), Iraq ($5.47 billion), and Qatar ($5.05 billion).
U.S.-Arab Trade Outlook: 2010 indicates that U.S. exports to the region are on track to more than double by the year 2015. This will provide an important boost to President Barack Obama’s National Export Initiative, which calls for doubling exports to $3 trillion over the next five years in order to support two million new jobs for Americans.
According to President Obama, who is quoted in the report, “In a time when millions of Americans are out of work, boosting our exports is a short-term imperative. Our exports support millions of American jobs. We have to be able to compete in the global market .. [and] it has never been as important an opportunity for America as it is now.”
The NUSACC report was released today during a conference in Doha entitled “Outlook 2010: Leading the Next 30 Years.” President & CEO David Hamod spoke at the conference, which was hosted by the Federation of GCC Chambers of Commerce and Industry.
The Chamber’s research affirms that there are significant U.S. export opportunities across the Arab world. Infrastructure build-out will continue to be the most significant driver behind foreign investment and exports to the region, particularly in the Gulf Cooperation Council (GCC) nations. The countries of the Arabian Gulf are making huge investments in upstream and downstream energy projects, power generation, water and waste treatment, ports and airports, roads & rail, hospitals, and schools. Big-ticket projects like these also open doors for related U.S. service providers, including those offering such cross-border services as logistics, engineering, training, and a wide array of other professional services.
U.S.-Arab Trade Outlook: 2010 also highlights some of the region’s key trends and sectors beyond infrastructure build-out, including investment in interconnectivity, consumer trends, education services, travel and hospitality services, Free Trade Agreements, and security & defense plans.
All 22 nations of the Arab world are profiled in the Chamber’s report. For each country, the report offers three important tables: 1) Imports, exports, and GDP comparisons over a five-year period; 2) “Top Ten” export sectors in each nation; 3) “Sectors to Watch,” which focuses on niche opportunities that are particularly attractive to small and medium-sized enterprises in the United States.
The Arab world is a high growth market of over 300 million consumers, and U.S.-Arab Trade Outlook: 2010 quantifies a broad recovery in consumer confidence over the past year. The most upbeat consumers are in the GCC – in Qatar, the United Arab Emirates, and Saudi Arabia, respectively – and this consumer confidence is translating into increased purchases of U.S. goods and services.
“In 2009, deficit spending and big-ticket infrastructure projects ensured healthy growth in many industrial sectors, but businesses that depend heavily on consumer spending took a hit as shoppers around the world cut back on purchases,” concludes David Hamod, the Chamber’s President & CEO. “2010 is off to a great start, and we are looking forward to record sales for U.S. exporters to the Arab world in the months ahead.”
About NUSACC
The National U.S.-Arab Chamber of Commerce, widely regarded as the voice of American business in the Arab world, is in touch with business communities across the United States and serves as the U.S. point of contact for the national chambers of commerce in the 22 Arab nations. On a daily basis, NUSACC works closely with leaders throughout the Arab world, as well as high-level decision makers in the U.S. business community, public policy research centers (“think tanks”), multilateral institutions, nongovernmental organizations (NGOs), media, and the U.S. Government.
For more information:
Online www.nusacc.org
Email nusaccnews@nusacc.org
Tel: 202-289-5920
Related Material:
- Saudi Economic Trends – Jadwa Chartbook – April 2010 – SUSRIS – Apr 6, 2010
- Opportunities and Change in the Kingdom: A Conversation with David Hamod
- KAUST: A Catalyst for Small Business Growth? – David Hamod
- Exports Support American Jobs – U.S. Department of Commerce, International Trade Administration
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