September 06, 2008

Combined GDP of GCC, Egypt and Jordan to cross USD 1 trillion

According to an industry research, the combined GDP of the GCC economies, together with Egypt and Jordan, will cross USD 1,045 billion in 2008, thereby sustaining the region’s demand for white goods and consumer electronics. The strong growth of Middle East economies at a rate of 6.5% annually is fueled mainly by the continuing high oil prices.

Morgan Stanley estimates that GDP for the GCC plus Egypt and Jordan will reach USD 1,045 billion in 2008, more than twice the 2002 figure of USD 484 billion.

Mr Eckhard Pruy CEO of Epoc Messe Frankfurt said that "The strong economic growth is also intensified by the real estate boom across countries in the Middle East that continues unabated and translates into huge opportunity for appliance manufacturers. In the GCC countries, investment spending will expand to at least USD 800 billion over the next 5 years, with major projects in the oil and gas sectors, infrastructure and real estate. Given the urge to splurge in the region appliance manufacturers can expect to boost their sales volumes in 2008."

The UAE and Dubai in particular, is among the leading markets for consumer electronics products in the Middle East. Dubai also features as the prime distribution centre for regional electronics sales. Industry analysts believe the surge in sales of electronics products in and through Dubai is due to competitive prices. With diversification of import sources and introduction of new products, huge demand in the Middle East has arisen, giving a new dimension to the scale of supply required.