Abu dhabi: Trade between the Gulf Cooperation Council (GCC) countries and the Caucasus and Central Asia (CCA) remains limited, with GCC exports to the region accounting for just 0.5% of total exports, Trend reports via the International Monetary Fund (IMF).
According to Trend News Agency, the latest IMF report indicates that trade between the GCC and the CCA is heavily concentrated in the United Arab Emirates. This concentration is attributed to the UAE’s Comprehensive Economic Partnership Agreements with Azerbaijan, Georgia, and the Eurasian Economic Union, which includes Armenia, Kazakhstan, and the Kyrgyz Republic. Bilateral trade through these agreements accounts for the majority of both exports and imports. The CCA primarily exports stones and metals to the GCC, while GCC investments in the region involve hydrocarbons, renewable energy, infrastructure, real estate, and financial services, representing a modest portion of the CCA’s GDP. Conversely, CCA countries such as Kazakhstan and Azerbaijan have invested in the energy, banking, and real estate sectors within the GCC.
GCC import tariffs are relatively low, reaching up to 5%, compared with higher rates in many other regions. The IMF report emphasizes that improving logistics, governance, and trade facilitation within the CCA could promote further interregional trade expansion.
Earlier, Jihad Azour, Director of the Middle East and Central Asia Department at the IMF, highlighted the importance of accelerating regional integration in Central Asia and the South Caucasus to attract investors. He noted, “The most effective way to address emerging challenges is to strengthen macroeconomic fundamentals by maintaining inflation control and mitigating issues that may arise due to trade tensions.”