In 2022, the EU-UAE trade in goods increased by an impressive rate (28%) from EUR 39.3 Billion in 2021 to EUR 49.6 Billion in 2022 out of which the EU export was EUR 35.7 Billion.
The EU remains the 2nd biggest trade partner of the GCC, representing some 12.3% of the GCC’s total trade in goods with the world in 2020. 17.8% of the GCC’s imports came from the EU in 2020. The EU thus ranked as the GCC’s number one import partner and investor approximately 17.5% of global trade and more than half of global foreign direct investments.
The challenging global context due to the Russian aggression in Ukraine and in this context ensuring global energy and food security and smooth green transition are issues of strong mutual interest providing a great many opportunities to further strengthen trade and investment ties.
The EU and the GCC collectively account for 20% of the global economy, 17.5% of global trade, and more than half of global foreign direct investment. The EU is certainly a key partner for the Gulf region, based on its economic strengths as the world’s biggest single market, and number one trader and investor. The EU is also a leader in research and innovation, and a leading actor on global challenges, such as climate change and digitalisation. The two regions share an overarching strategic ambition, namely to speed up the green and digital transformations of their economies and societies. Going green and digital means economic diversification, innovation, and making better use of limited resources.
Taken as a whole, with 30% of proven oil reserves, 20% of those of gas, assets estimated at more than USD 3,800 billion in its sovereign wealth funds, the GCC countries are expected to gain economic and also political clout. This is a reality that cannot be ignored.
In this newsletter, readers will find some particularly interesting articles for those considering to invest in Luxembourg:
- How to succeed in your expansion in Europe;
- Luxembourg as the world’s best in talent attraction;
- High economic resilience, good governance indicators, and sound public finances contribute to Luxembourg’s long-standing AAA credit rating;
- Underpinning the drive towards economic diversification and increased productivity, Luxembourg’s great efforts in research and innovation are a red thread running through the LTIO’s newsletters.
Best wishes to you and your families this Ramadan from the LTIO for the Gulf – رمضان كريم
Jean-Marie Frentz
Executive Director