Trade Relations between the GCC and South Africa

Abstract

Abstract In this paper, I present an overview of major similarities and differences between the GCC countries and South Africa and describe South Africa's trade with the Arab Gulf by examining South Africa and GCC's major traded commodities and South Africa's trade with its major trading partners and with the GCC countries. Then I discuss those trade areas that seem to be most promising in South Africa's trade relations with the six GCC countries. Finally, I outline potential future developments. While I primarily discuss these issues from the perspective of South Africa, I also point out potential trade opportunities from GCC countries' perspective. Today the Arab countries of the Middle East face a challenge familiar to all South Africans: to create jobs for the large cohort of young people reaching working age. Over the next decade or so, the Middle East may experience population growth of 150m people – the equivalent of adding two Egypts. In demographic terms, the task is similar to that facing SA–only larger. Rising labor force participation by women only increases the pressure. The task is immense and the stakes are high. Marcus Noland and Howard Pack (2008), Global Dialogue