|14 August, 2019

GCC economic growth seen at 3.2% in 2020

Trade in the Mena region is expected to grow 131% over 2012 to 2026

Image used for illustrative purpose. A scenic view of Dubai.

Image used for illustrative purpose. A scenic view of Dubai.

Dubai Tourism

GCC’s economic growth is projected to reach 3.2 per cent in 2020 and stabilize to 2.7 per cent in 2021 as compared to 2.1 per cent in 2019, said the organisers of the upcoming Gulf Trade Finance Summit in Dubai, citing a World Bank report.

To facilitate the rising wave of economic progress and build on the immense success of the first edition, Organised by QNA International, the 2nd Annual Gulf Trade Finance Summit 2019 will take place on September 17 and 28 at Intercontinental Festival City – Dubai under the theme – Disrupting Trade Finance - Beyond Borders.

According to a study, trade in the Mena region is expected to grow 131 per cent over 2012 to 2026, faster than global trade, which is estimated to increase 86 per cent over the same period.

The Gulf Trade Finance Summit, an exclusive by-invitation Summit brings together over 200 top level attendees from regional Government and Regulatory Authorities, CFOs, Heads of Finance and Treasury from the biggest conglomerates and corporates in the region along with Banks, Financial Institutions and Trade Finance Service Providers under one roof to discuss the way forward in diversifying from a hydro-carbon based economy.

Relatively stable oil price has helped lift the outlook of the economy but the vision of the region remains moving away from the dependency on oil. With the strategic focus of achieving the region's vision of economic diversification, the premiere summit will entail the action plan to develop a pragmatic strategy and approach to achieve the same.

Due to the impetus and support from the government, UAE's market is one of the world's most dynamic markets worldwide, placed among the 16 largest exporters and 20 largest importers of commodities in 2017.

Graham Bright, head - Compliance and Operations, Euro Exim Bank said: "With strategic importance to exporters, the region is at the centre of fast-growing trade flows between Europe, Africa, India and China, with that being said, the opportunities for the region are significant as are the challenges to supply the demands of an environment with strong regulation, legal frameworks, financial capacity, trust, and efficient supply chains, making it easier than ever to do cross border business economically and effectively.

“With access to over 3 billion people - 40 per cent of the world's population within a 4-hour flight, GCC sovereign wealth funds amongst the world's biggest investors and significant building projects make the region a trade and financial powerhouse."

Credit demand in the UAE for the September 2019 quarter is expected to improve, driven by increase in appetite for both business loans, while credit standards are projected for a further tightening, according to the latest Credit Sentiment Survey of the UAE Central Bank.

Commenting on the increase in trade credit as an indicator of the recovery of the market, Ubaldo Tambini, managing director, CRIF – Dun & Bradstreet, CRIF solutions said: “We are very excited to be a part of the Gulf Trade Finance Summit for the second time as it provides an excellent opportunity for businesses, thought leaders and regulators to network and have an open dialogue regarding the immediate challenges and awareness of the global trends and financial disruptions.”

Sidh NC, director, QnA international, said: “The GTF summit brings together GCC thought leaders and financial experts from the most forward-thinking corporates, banks and financial institutions from the region to enable thought provoking trade finance conversations through its informative conference sessions, that are relevant to the current situation and derive concrete solutions for some of the most crucial regional trade finance concerns from challenges faced in international trade, risk management, managing account receivables, open account transaction, liquidity management, financial structuring, Fintech, Blockchain, encouragement of SMEs and a lot more.” – TradeArabia News Service

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