To download or print this newsletter, please click here .

EURO-ARAB ECONOMIC NEWS AND EVENTS

Economic News

Newest statistics on Arab-Belgian trade exchanges

In the past months, the Secretary-General of the Chamber underlined on several occasions the importance of the Belgian trade relations with the Arab countries and the potential to further increase these relations. According to the latest statistics, exchanges between the two sides are indeed on the rise, opening perspectives for further growth.

Yet, the share of the Arab countries in the foreign trade of Belgium remains small in spite of significant improvements achieved in the year 2010 after the slump of exchanges between the two parties in 2009. The percentage of both Belgian exports to and imports from the Arab world stood at just 2.4% of the total Belgian exports and imports. Arab countries occupied the eighth rank as the Belgian export destination, and rank ninth among the world suppliers China.

Belgian imports from the Arab world increased by 41.2% in 2010 compared to 2009, amounting to 7.1 billion € in 2010 against to 5 billion € the previous year. The Belgian exports to Arab countries improved by 12.4%, and their value increased from 6.6 billion € in 2009 to 7.4 billion € in 2010. The trade balance achieved a surplus of 346.5 million € in favor of Belgium during the year 2010.

In 2010, Belgian imports from its key partners in the Arab countries increased substantially: Algeria (+64.4%), the United Arab Emirates (+64.75%) and Saudi Arabia (+59.5%), while imports fell from Tunisia (-38.3%) and Libya (-13.6%). The Belgian exports increased significantly to: the United Arab Emirates (+15.1%), Algeria (+13.70%) and Saudi Arabia (+10%), but decreased to countries like Qatar (-35.8%), the Sultanate of Oman (- 22.3%) and Iraq (-19.5%). 

Belgian exports to the Arab countries in 2010 consisted mainly of machinery and equipment, accounting for 23.1% of the total exports of Belgium to the Arab world and recording an increase of 7.9% compared to 2009. The chemical industry products accounted for 19.7% of exports (an increase of 21.1% compared to 2009), followed by precious stones and metals, which represent 11.5% of the total and recorded an increase of 44.4% compared to 2009.

Imports from the Arab world consisted mainly of metal products, which accounted for 47.5% of Belgian imports from the Arab world and recorded an increase of 53.56% compared to 2009, followed by precious stones and precious metals, accounting for 19.8% of Belgian imports and an increase of 68.2% compared to 2009, and chemical products industries (10.1% of the total and an increase of 124.33% compared to 2009).

Arab imports from Belgium, 2009 – 2010 (1000 €)

Arab exports to Belgium, 2009 -2010 (1000 €)

Economic prospects for Tunisia

The African Development Bank Group (AfDB) held discussions in Tunis, on 12 May 2011, on the theme “Post-revolution Tunisia, Economic Challenges and Prospects”. The event initiated high level discussions between experts from the bank, key players in Tunisian economy, research scientists, business people, and civil society. Discussions were based on a study by the Bank’s Operations Departments in charge of North Africa and Development Research.

The joint paper offers various economic scenarios covering the next two years, with a growth rate ranging from 3,5 per cent to -2,5 per cent. All Tunisian participants agreed that the democratic outlook in the long term holds promises for growth, but that the country is now in a most sensitive stage of transition.

The Governor of the Central Bank noted that the post-revolution era is marked by uncertainties, calling for the need to "adopt an uncertainty and risk management position". The best approach is "not to commit all available fiscal and budgetary instruments immediately, but to leverage them as and when more urgently needed,” according to the Governor.

The President of the Center for Young Entrepreneurs, Mr. Andelaziz Darghouth, said that the future of businesses requires "resuming dialogue between employers and employees, and building trust between these two groups of actors, failing which no wealth can be created". To this end, there is a need to foster transparency values, and to firmly include youth and women in the future country’s economy.

The Vice-Presidents of the African Development Bank Vice-Presidents reiterated the bank’s support for Tunisia in this critical period and Chief Economist Mthuli Ncube considered that support for the private sector and SMEs is a priority for job creation and the country’s economic recovery. For example, he added that Tunisia has a set of very innovative companies in the field of communication technologies that need to be leveraged.

The whole private sector is currently disrupted, and that is likely to remain so until the situation is stabilized. Even though the economic and political future is uncertain, nonetheless Mr. Ncube added a note of hope: "We must be confident in the country’s reconciliation process.”

Most specialists agree the stabilization of the situation in Tunisia and the region requires the establishment of strong institutions for civil society. Financial institutions specialized in development aid and donors cannot claim to have ready-made solutions, yet "A more equitable growth should be the priority.”

The study of the African Development Bank is available on: www.afdb.org

Egypt: new business reforms to bring back investors

The interim government has recently adopted a new range of measures aiming at restoring investors’ confidence in the Egyptian business environment. The measures intend to foster investing endeavors by facilitating the investment process and reducing red tape.

According to the head of the General Authority for Investment (GAFI), Mr Osama Saleh, the incentives adopted will help reducing several difficulties faced by businessmen when trying to set up industrial projects. The new regulatory framework has cancelled the initial approval of the Industrial Development Authority, which was previously required to start a project, as well as the licensing fees paid for industrial projects.

It is also worth mentioning that the registration process of foreign firms willing to establish a franchise has been shortened from four months to three days, whereas the validity period of export and import licenses has been extended to three, or even five years.

To learn more, read the article on Ahram Online.