Sigma Capital

30-01-2025

GCC trade ‘poised for 5.5% annual growth’

Source: MIST

The GCC is set to strengthen its position as a global trade hub, with significant growth across key trading corridors, according to a new report from Boston Consulting Group (BCG).

The report, ‘Great Powers, Geopolitics, and the Future of Trade,’ projects GCC trade volume to reach $2.3 trillion by 2033, driven by an average annual growth rate of 5.5 per cent. This growth will be fuelled by expanding trade with China ($88 billion), Japan ($46bn), and other key markets.

The analysis shows GCC’s non-hydrocarbon trade will grow by 3.5pc annually, highlighting the region’s successful economic diversification efforts.

It also highlights the increasing importance of the GCC as a critical connector between East and West. As trade between the Global South and developed economies expands significantly with the report projecting trade between developing nations to grow by $673bn through 2033, the region’s strategic location and developing infrastructure position it to capitalise on these evolving trade dynamics.

“The reconfiguration of global trade flows presents a pivotal moment for the GCC,” said BCG managing director and partner Rami Rafih. “The region is not just a geographic intermediary but a central orchestrator of new patterns. The key is leveraging this foundation to shape emerging trade corridors, particularly as Global South commerce evolves.”

The report outlines several key imperatives for GCC businesses, including developing resilient and transparent supply chains, building geopolitical capabilities to anticipate and respond to changing trade dynamics, expanding their presence in growth markets like India and China, embracing smart nearshoring strategies, and investing in regional differentiation to effectively serve diverse market requirements.

“For business leaders, navigating today’s complex trade landscape requires more than agile supply chains – it demands an insights-driven approach to geopolitical shifts,” said Cristian Rodriguez-Chiffelle, partner and director for trade, investment and geopolitics at BCG. “Success will come to those who cultivate deep market intelligence, develop robust scenario planning, and build a portfolio of strategic options.”