How the UAE dominates investments between Gulf, ASEAN markets

Conducted by the Economist Intelligence Unit (EIU) and commissioned by Dubai Chamber, the report showed that the total value of investments from the GCC into the ASEAN region – Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam – was estimated at $13.4 billion between January 2016 and September 2021.

The report, released ahead of the first Global Business Forum (GBF) ASEAN in Dubai last week, examined trade synergies between ASEAN and GCC markets, as well as bilateral business opportunities.

Hamad Buamim, president and CEO, Dubai Chamber, said the report provides valuable insights on the vast potential that exists between the two regions, which helps businesses on both sides make informed decisions and explore growth opportunities abroad.

The whitepaper noted that the digital economy is expected to drive growth in ASEAN’s key sectors, adding that there also remains plenty of potential for ASEAN and GCC companies to boost trade of agricultural products.

The GCC is a key export market for ASEAN-made products such as electronics and machinery, which accounted for 28 percent and 12 percent of the $144 billion worth of imports from ASEAN between 2016 and 2020, respectively.

The data showed a trade imbalance between the two regions, with just 2 percent of ASEAN’s total imports between 2016 and 2020 coming from the GCC.

On the other hand, the ASEAN region accounted for just 4 percent of the GCC’s total exports over the five-year period, amounting to $126 billion, with the majority comprising crude oil (43 percent) and plastic polymers (20 percent).

GBF ASEAN is held under the patronage of Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai and features two days of interactive sessions looking at prospects for building new bridges of economic cooperation between the UAE and ASEAN countries.