ASHGABAT, Turkmenistan, December 12. 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).
The latest IMF report indicates that trade between the Gulf
Cooperation Council (GCC) and the Caucasus and Central Asia (CCA)
is heavily concentrated in the United Arab Emirates. This
concentration reflects 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 vast
majority of both exports and imports. The CCA primarily exports
stones and metals to the GCC, while GCC investments in the region
encompass 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 made strategic investments 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 enhancing logistics, governance, and trade
facilitation within the CCA could significantly promote further
interregional trade expansion.
Earlier, Jihad Azour, Director of the Middle East and Central
Asia Department at the IMF, stressed that accelerating regional
integration in Central Asia and the South Caucasus is essential to
attract investors.
"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," he noted.
