Press Conference
JT IRmep – National US Arab Chamber of Commerce Press Conference
2006 Outlook: U.S. Merchandise Exports to the Arab World
Executive Summary Release: Friday, September 16, 2005
10:00 – 11:00 a.m.
National Press Club, West Room, 13th Floor
529 14th Street, N.W. in Washington, DC
Contacts: David Hamod at (202) 289-5920 or dhamod@nusacc.org
Grant Smith at (202) 342-7325 or gsmith@grant-f-smith
The National U.S.-Arab Chamber of Commerce (NUSACC) releases a special report this Friday on the 2006 outlook for U.S. merchandise exports to the Arab world. 2006 promises to be one of the strongest years ever for U.S.-Arab trade, with estimated sales of $37.9 billion — an increase of more than 40 percent over projected levels for 2005.
“These data show that the Arab world continues to be one of America’s best and most reliable customers,” notes David Hamod, NUSACC’s President and CEO. “Despite strife in the region and occasional ups and downs in U.S.-Arab political relations, the economic partnership is steadily climbing to new heights. Clearly, the ‘Made in the USA’ label still has tremendous cachet.”
The special report contains a list of “Top Ten” U.S. exports to each nation, as well as a “Sectors to Watch” section that will be of particular interest to small and medium-sized enterprises.
NUSACC attributes the substantial growth in 2006 to a number of reasons:
1) Petroleum exporting nations are benefiting from higher oil prices, thereby boosting their import purchasing power. Several of these nations almost met their total 2004 import levels from the United States by mid-2005.
2) Local investments by the Arab private sector are at an all time high, and many of these involve U.S. goods and services. Such investment took off after 9/11, when many Arab business leaders began staying “closer to home.” One indicator of investment, stock market activity in the Arab world, has averaged gains of 90.30 percent in 2005 (YTD).
3) The size of the region’s consumer market continues to grow. As a result of globalization, Arab consumers are more aware than ever about the appeal and availability of U.S. products, and they are flush with disposable income. Young consumers (and their parents) are particularly important targets for advertising and marketing campaigns. The Arab world has one of the youngest populations around the globe — more than 36 percent of the Arab world’s population is 14 years old or younger — and one of the world’s highest population growth rates at 2.3 percent annually.
The largest Arab markets for U.S. exports in 2006 are projected to be Saudi Arabia ($10.7 billion), the UAE ($10.2 billion), Egypt ($5.1 billion), Kuwait ($2.3 billion), and Iraq ($2.2 billion).
A comprehensive report — “2006 Arab Market Outlook: Demand Forecast for U.S. Goods and Services Exports” — is available online at http://www.nusacc.org.