MIDDLE EAST REGION: AN OVERVIEW
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1 MIDDLE EAST REGION: AN OVERVIEW The Middle East Region comprises of 15 countries, of which six form part of the Gulf Cooperation Council (GCC) and includes Bahrain (GCC), Egypt, Iran, Irak, Israel, Jordan, Kuwait (GCC), Lebanon, Oman (GCC), Palestine, Qatar (GCC), Saudi Arabia (GCC), Syria, United Arab Emirates (UAE GCC) and Yemen. Key Facts Population: 331 M Total area: 6.5 M km 2 Average GDP per capita: 17,335 USD Average GDP per capita (GCC): 72,307 USD 66% of the world's oil reserves World Fact Book, Import: 768 bn USD (4.7% of World Import) Main import partner: China, USA, India, Germany, Turkey, Japan, UAE Export: 732 bn USD (4.5% of World Export) Main export partner: China, India, Japan, South Korea, USA Source: Trademap, 2015 Economy The GCC countries and several others in the Middle East have abundant reserves ofnatural resources, especially oil and gas, the exploration of which has contributed significantly to foreign exchange revenue. The Middle East region, which has been dependent on export of crude oil, has in the recent years been facing an exceptionally challenging environment as low oil prices and conflicts continue to weigh on economic activity, fiscal and external balances, and the financial sector ( As such, the question of diversifying traditionally oil based economies and reducing the reliance on oil has become a key issue in the Middle East. These have surged countries like UAE (Dubai & Abu Dhabi), Kuwait, Oman, Qatar and Saudi Arabia for rapid modernisation in regards to their infrastructure, real estate and city development for diversifying their economies.
2 Exports Opportunities promising development in the Middle East The Middle East countries show many common trends in terms of consumer behaviour and preferences. What is driving the changing consumer pattern in terms of food consumption and clothing trend is a young, dynamic population. Social media savvy and open to new ideas, young people in these countries are becoming more aware of global brands than they have been in the past. Today, the internet and social media sites have become vital tools to follow up innovative products as well as the latest fashion trend. The following major development will surely help in boosting Mauritian trade with the Middle East: Dubai Expo 2020 Dubai will host the next World Expo from October 2020 to April 2021, targeted to bring along some 180 nations and an international audience of 25 million visitors. This is leading to massive development and megaprojects in the city. Qatar hosting the FIFA World Cup in 2022 More than USD 200 billion has been allocated by the Qatar Government for construction, infrastructure development, public transportation, and logistics projects to meet and serve the demands of the country s growing population and projected event spectators. Moreover, Qatar imports more than 90% of its food. Oman Development in the pipeline include both large scale malls and smaller neighbourhood shopping centres Textile & Apparel sector The Middle East along with China, India, Russia and Africa form part of the targeted markets which peak during the low season in our traditional markets for textile & apparel The apparel industry in the UAE has converted from conventional markets to large shopping malls and organized retail chains. Expected growth of 13.3% is foreseen in Accounting for about 5.5% of the world s annual textile and clothing sales, the UAE has today become the world s 4 th largest trading center for fashion and apparel products. UAE s main supplying countries for apparel include China, India Spain, Italy and Turkey Food Sector Food security continues to be a key driver for the Middle East region, specially the Gulf States. The UAE currently imports 85% of their food needs, and is looking for reliable food sourcing destinations. Middle East and North Africa food imports are expected to rise from 56% in 2000 to 63% by 2030 (World Bank).
3 The food regulations are less stringent than the European market, thereby allowing more SMEs in the agro sector to tap the Middle East markets. The GCC demand for fresh fish is expected to grow by 8% per annum up to 2030 (FAO Globefish report). UAE and Oman have the highest worldwide consumption estimated at 28.6 kg per year. Mauritius Domestic Export to the Middle East 2015 Source: Statistics Mauritius Analysis on main target countries and products for Mauritius within the Middle East conducted an in depth research to identify the top 7 countries and main targeted products having export potential in line with its market diversification strategy within the Middle East region. This research method was developed by the International Trade Centre (ITC) as it took into consideration criteria such as imports, market growth, market dynamism, competitor analysis and also political stability. An indication of products potential in the Middle East is given below: Target Countries 1 UAE 2 Oman 3 Jordan 4 Egypt 5 Iran 6 Israel 7 Saudi Arabia
4 High Potential Medium Potential Very targeted Niche Animal feed, fish meal preparations Fresh fish Special sugars, Instant noodle, pasta, canned tuna, salted fresh fruits (pineapples) Printed books, PET bottles, medical devices Frozen tuna Apparel products (medium potential only for UAE) Actions in the Middle East EM organised three major events across the Agri & Agro Cluster since 2015 enabling local companies, including SMEs, to understand the market requirements within the Middle East and North Africa (MENA) region and even develop export of some specific products to new markets like the UAE, Egypt, Bulgaria, and Seychelles. Other new markets still under negotiation include Bahrain, Kuwait, Iran, Jordan, Oman, Qatar and Saudi Arabia, amongst others. Year Event Sector 2014 Contact Promotion Programme Textile & Apparel, Agro & Dubai & Bahrain Jewellery 2015 World of Perishables Dubai Fresh fruits and Vegetables 2016 & 2017 Gulfood Dubai Sugar & Agro Processing 2016 SEAFEX Dubai Seafood Agro Processing: Special sugars, fruit paste, jam, honey, dried & instant noodle, pasta and juice have so far been showcased at Gulfood. Much emphasis was laid on tasting of Mauritian products thus enabling visitors to experience the Exotic Taste from Mauritius. The MENA region was found to be the most competitive market for Mauritius to position juice, instant noodle, honey and pasta. Fresh fruits & vegetables: The victoria pineapples and litchis represent favourable export potential to the Middle East. However air freight remains a hindrance to export. Seafood: Participation in SEAFEX provided an in depth understanding as to the demand for fresh fish and considerable market potential for our farmed seabass and red drum as well as other tropical fish. Salted fish was also found to be the right product for the MENA region.
5 Gulfood 2017 SEAFEX 2016 CPP Dubai/ Bahrain 2014
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