BUS613: Advanced International Business

MENA is one of the least globally and regionally integrated regions. Its share in total world exports of nonoil goods remained below 1% for many years, gradually increasing in the past decade to reach 1.8% in 2008–10. Similarly, despite doubling services exports, MENA's share in total services trade has stayed at 2-3% in the past two decades. Last decade, however, most MENA countries began to open their economies. The United Arab Emirates (UAE), Qatar, Kuwait, Egypt, Jordan, Oman, and Iran have seen the fastest growth in exports in the region. Among oil importers, Egypt and Jordan have made significant progress in diversifying exports. Most Gulf Cooperation Council (GCC) exports also show reduced dependence on crude exports in favor of processed industries, including chemicals, fertilizers, and other petroleum-based products. 

Integration within MENA is low compared to other middle and high-income regions. Intraregional exports of goods averaged less than 8% of total exports in 2008– 10, compared to 25% in the Association of Southeast Asian Nations (ASEAN) and 66% in the EU (figure 1). The countries that trade the most within MENA are oil importers, particularly Mashreq countries with strong links to the GCC (45% of their exports are within MENA) and Egypt (28%). Maghreb countries with close ties to the EU, export the least within the MENA region (less than 5 %) and among themselves.  

Figure 1: Share of Exports within Regions