Middle East Market Profile
l Emerging Middle East Market
There are 27 countries in the Middle East region with a total population of 700 million, of which Egypt, Iran, Iraq, Saudi Arabia and Yemen are among the highly populated. With the GNP of ( ), Saudi Arabia is the largest economic entity in the Middle East and accounts for 17% of the regional GDP, which is followed by Israel, Egypt, Iran, United Arab Emirates and Kuwait.
In 2007, the annual trade volume of the Middle East and China has amounted to 240 billion USD, double of that in 2000. It is estimated over 250 billion USD will be invested by GCC members in Asia, mainly in China. According to IMF World Economic Outlook 2007, in 2008, the average economic growth rate of the Middle East region will be around 6.1%, there into that of Iraq, Saudi Arabia and Kuwait higher than 6%, and 5.9% in 2009.
1 Singapore TODAY, Global Times 2007-09-05
2 IMF World Economic Outlook 2007
l Great Potentials in the Rebuilding of Iraq and Lebanon
A great many market opportunities are emerging in the course of large-scale reconstruction as the situation in Iraq and Lebanon become gradually stable. According to the statistics of American Chamber of Commerce in Jordan, the rebuilding fund of Iraq added up to some 35.8 billion USD from 2004 to 2007, of which 12.122 billion were invested in power industry, 7.19 billion in medical services and education, 6.842 billion in water treatment and environmental sanitation, 3.409 billion in transportation and communication, 3.027 billion in agriculture and 1.831 in housing and municipal administration.
Currently, the infrastructure of Iraq lags behind at least 30 years than its neighboring countries, and it is estimated that the total demand for post-war reconstruction will be 150 billion USD, most of which will be distributed to industries including agriculture, transport, building materials, communication, power and oil. Lebanon has also suffered great losses from the war since Jul. 2006. Infrastructures like power, communication and transport are under way, and it is estimated by Lebanon Beirut Chamber of Commerce that the market demand will be over 40 billion USD.
l Favorable Investment Environment of Jordan
Politically neutral, Jordan may be the safest country in the Middle East region, boasting of complete transports, including highly developed international highway and railway networks to Iraq, Syria, Saudi Arabia and Israel, marine transport to over 200 international harbors with annual capacity of 22 million tons, as well as 3 airports and 50 international air lines. Implementing tax-free and visa-free policies, Jordan also has a well-developed banking and trading service system. There are 1 million Iraqis in Jordan, and nearly 10,000 domestic enterprises doing businesses with Iraq. In 2007, Jordan gross export amounts to 15.8 billion USD, increasing by 12%; and gross import to 12.5 billion USD, 9.6%.
