GCC trade with India, Brazil of ‘growing significance’ as it reaches $195bn, says Al-Budaiwi

RIYADH: Trade between the Gulf Cooperation Council and its partners India and Brazil reached nearly $195.1 billion in 2022, as reported by GCC secretary-general.

During the India-GCC Joint Ministerial Meeting for Strategic Dialogue,  Jasem Mohamed Al-Budaiwi highlighted the expanding economic ties with both countries, with a particular focus on opportunities in renewable energy, artificial intelligence, and fintech.

Al-Budaiwi began his speech by underscoring the solid foundation of economic cooperation that supports the GCC’s relationships with India and Brazil. He emphasized the significance of these partnerships in promoting mutual growth and addressing global challenges.

On the trade front, the GCC chief provided detailed figures to illustrate the robust commercial relationship between the GCC and India. He said: “In 2022, trade between the GCC and India amounted to approximately $174 billion, representing around 11 percent of the total foreign trade of the GCC.”

Al-Budaiwi further detailed the trade figures, revealing that the GCC’s exports to India were valued at $91 billion, while imports from India totaled $83 billion. He said: “This trade volume strengthens economic integration between us and provides opportunities for growth and expansion in both our markets.”

In 2022, trade between the GCC and Brazil nearly doubled, reaching $21.9 billion. Al-Budaiwi remarked: “This figure accounts for approximately 1.4 percent of the total foreign trade of the GCC, which amounted to $1.544 trillion last year, highlighting the growing significance of our collaboration.”

He further elaborated on the diverse nature of this trade, noting that it encompasses various commodities, including oil, gas, iron, foodstuffs, and mineral oils.

“These exchanges reflect the shared importance of cooperation between both sides and underline the breadth of products and goods involved in this partnership,” Al-Budaiwi stated.

Turning to the GCC’s economic relations with India, he highlighted the significant investments made by the Gulf states, noting, “GCC countries have invested nearly $6 billion in various projects in India, reflecting mutual trust and the promising opportunities offered by both markets.”

Al-Budaiwi explained that these investments are crucial for generating significant economic benefits on both sides, including job creation and overall economic growth. He emphasized: “By enhancing joint investments, we can achieve substantial economic gains, such as job creation and growth.”

He also underscored the strategic importance of renewable energy cooperation between the GCC and India, stating, “There are great opportunities for joint investment in renewable energy sectors between the Gulf states and India.” He added that such collaboration will contribute to sustainability, diversify energy sources, and support environmental protection.

Furthermore, Al-Budaiwi highlighted the role of this partnership in advancing global sustainability goals, adding: “This is not just about economic gains; it is about securing a sustainable future for generations to come.”

Al-Budaiwi also discussed the promising opportunities for collaboration in technology and innovation. He said:“There are immense possibilities for cooperation in areas like artificial intelligence, big data, and financial technology.”

He emphasized that leveraging expertise in these fields will drive innovation and promote sustainable growth, adding: “This collaboration will enhance our capabilities in innovation and ensure sustainable development for both sides.”

In his concluding remarks, Al-Budaiwi reaffirmed the essential role of economic cooperation in the overall relationship between the GCC, India, and Brazil. He asserted: “Economic cooperation forms the foundation of our trade and investment relations. It is the cornerstone upon which we build our commercial and investment ties.”

He expressed optimism about the future, noting that these strategic partnerships are expected to evolve, benefiting the economies of the GCC and its partners and contributing to global economic stability and sustainability.

Al-Budaiwi announced that both sides have agreed on a Joint Action Plan for 2024-2028 to advance cooperation, with the General Secretariat coordinating between India and the GCC to implement and enhance the plan.

Al-Budaiwi’s speech at the GCC-India Strategic Dialogue underscored the shared vision of the GCC, India, and Brazil for deeper economic cooperation. The event, chaired by Qatar’s prime minister and attended by India’s external affairs minister, established a framework for strengthening ties in innovation, sustainability, and economic integration.