Arab Countries Achieve Global Market Penetration in Diverse Industries
In recent years, several Arab countries have successfully penetrated global markets, showcasing their industrial capabilities beyond traditional oil and gas exports. According to a report from the United Nations Economic and Social Commission for Western Asia (ESCWA), the total value of Arab commodity exports reached approximately $1.4 trillion in 2023, accounting for 5.8% of global exports. Despite a decline in total exports due to lower commodity prices and slowing demand from major economies, countries like Morocco, Jordan, Saudi Arabia, and Egypt have emerged as leaders in non-traditional industries.
Morocco: A Leader in Automotive Exports
Morocco has established itself as a significant player in the automotive industry, exporting 700,000 cars annually to over 70 countries. The country produced a record 535,825 cars by the end of December 2023, becoming the largest exporter of cars to the European Union, surpassing traditional automotive giants like Japan and South Korea. The Moroccan government has fostered this growth through strategic partnerships with global car manufacturers and investments in electric vehicle production, aiming to increase electric car output to 100,000 units by 2025. In 2023, Moroccan car exports to the EU reached €15.1 billion ($16.4 billion), marking a 30% increase from the previous year.
Jordan: Expanding Clothing and Pharmaceutical Sectors
Jordan has made significant strides in its clothing and pharmaceutical industries. The country's clothing exports have surged from $113 million in 2000 to $2.1 billion in 2023, thanks in part to trade agreements with the United States and the European Union. The pharmaceutical sector has also seen growth, with exports rising by 19% in 2023, reaching $869 million. Jordanian medicines are now available in 73 markets worldwide, and the country aims to increase pharmaceutical exports to $4.17 billion by 2033.
Saudi Arabia: Growing Pharmaceutical Market
Saudi Arabia's pharmaceutical market is projected to grow from $9.4 billion in 2024 to $11.7 billion by 2033. The country exported $556.6 million in pharmaceutical products in 2023, with a notable increase in local production capabilities. The number of pharmaceutical factories in Saudi Arabia has risen significantly, and the sector is becoming increasingly attractive for investment, reducing reliance on imports.
Egypt: Fertilizer Industry Boom
Egypt has transformed its fertilizer industry from an importer to a major global exporter, with exports increasing from $77 million in 2007 to $2.46 billion in 2023. The discovery of new natural gas reserves has been pivotal in this growth. The sector's exports are expected to reach $8.5 billion by the end of 2024, with key markets including Turkey, Italy, and Saudi Arabia.
These success stories highlight the potential of Arab countries to diversify their economies and compete in global markets, moving beyond traditional reliance on oil and gas exports.
