GCC Leads Arab Nations in E-Trade, Study
Regional, Economics, 8/7/2002

Arab e-trade faces several obstacles, but the Gulf Cooperation Council nations are the leaders in this field, with an industry worth US $1.3 billion, a study said on Monday.

Kuwait news agency (KUNA) which obtained a copy of the study, that was prepared by the Egyptian Al-Ahli bank, said the size of current Arab e-trade reached three billion dollars, with estimates that it will increase to nearly five billion by the end of this year.

The GCC (mustering Bahrain, Qatar, Kuwait, Oman, Saudi Arabia, the United Arab Emirates) leads other Arab states as regards the size of Arab e-trade, the study said. Following was Egypt with approximately $ 500 million, while overall e-trade among other Arab states was worth $ 1.2 billion, the study said.

Despite the growth in Arab e-trade, the study explained, hikes in service charge and the electronic gap between the Middle East and Europe and America make Arab e-trade expansion difficult.

The study said e-trade is the best means to reach global markets with the lowest costs possible, despite fears of added expenses such as sales tax.

Arab states have large opportunities in the fields of program industries, information systems, program creation and development, as they also have a base for the production of programs to be marketed and sold in global markets as well as locally, the study said.

Despite advancements and an increase in internet users by 25 percent annually, Arab states are still far from computer creation and assembly, and only small companies have made modest and limited initiatives in this regard, the study said.

The gap between Europe and America and the Middle East is still large, with Europe and America surpassing the Middle East with almost five generations of technology. This has handicapped development, scientific research and technology in the Arab states, which has yet still to surpass the 0.7 percent mark of the total production.

The study called on the eradication of obstacles standing in the way of Arab development, starting with global company's control on the Arab markets and spreading the use of the internet in the Middle East region.

E-trade is the key for developing nations export during the next period, the study said, emphasizing the need to speed up the development of an adequate base that will allow the facilitation of movement in this field.

The study considered e-trade to be an unprecedented form in reaching various global markets at one time, in the easiest way possible. This is due to the facilitation of purchases through management and financial problem-solving, the study added.

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