Essential Information              

Origins

The origins nationalist notion of cultural and political unity among Arab countries lie in the late 19^th and early 20^th centuries, when increased literacy led to a cultural and literary renaissance among Arabs of the Middle East. This contributed to political agitation and led to the independence of most Arab states from the Ottoman Empire (1918) and from the European powers (by the mid-20^th century). An important event was the founding in 1943 of the Baath Party, which formed branches in several countries and became the ruling party in Syria and Iraq. Another was the founding of the Arab League in 1945. Pan-Arabism's most charismatic and effective proponent was Egypt's Gamal Abdel Nasser.

Arab League

The Arab League or League of Arab States was a regional organisation formed on March 22, 1945 (Alexandria Protocol) and based in Cairo. It initially comprised Egypt, Syria, Lebanon, Iraq, Transjordan (now Jordan), Saudi Arabia, and Yemen; joining later were Libya, Sudan, Tunisia, Morocco, Kuwait, Algeria, Bahrain, Oman, Qatar, the United Arab Emirates, Mauritania, Somalia, Palestine, Djibouti, and Comoros. The league's original aims were to strengthen and coordinate political, cultural, economic, and social programs and to mediate disputes; a later aim was to coordinate military defence. The official language is Arabic. The total Population of the Arab League was estimated at 345.98 Million in 2007.

Emerging Arab world and business opportunities

The Arab world, a home to more than 360 million people, representing 5% of the world’s population, with an area of about 13.3 million km² (about 10% of the world inhabited land), and around 2799 billion dollars Gross Domestic Product (3.7% of global GDP), is playing a greater role in the world economy. Moreover, the Arab world will be a centre to the Islamic economy, estimated at US$3 trillion, a new economic paradigm that is likely to have a significant global impact over the next decade.

The abundant revenues of oil and gas made of the Arab world the largest region in terms of sovereign wealth funds in the world, with total assets estimated at about $1970 billion (38% of the total world assets). If well invested, the available huge funds are the stone corner to diversify the local economies in the Arab countries. In terms of investments in the Arab world as a whole, they have increased from $6.1 billion in 2000 to $79.3 billion in 2009, this level is comparable to that of China ($95 billion 2009) (UNCTAD data). The ongoing pattern of global growth, with emerging economies grow faster than their advanced counterparts, and the shift in the global economic power, ensures that Middle East and Africa are expected to be the fastest growing regions in 2018, which means huge needs in terms of investments mainly infrastructure, renewable energy, health, education, etc… just to mention a few.

With more than 135 million internet users in the Arab world, a new generation of entrepreneurs, passionate about technology, is emerging. This region is expected to post robust growth over the next decade both in terms of population and GDP. By 2015 the Arab population is forecast to reach 371m, about 50% increase over the level in 2000. Whereas the real GDP (based on PPP) is expected to grow by about 190%.

Doing business in the Arab world becomes a corner stone for the local governments. The battle is now between the economic ministers in terms of the most business-friendly economy. Several Arab governments implemented regulatory reforms in the past years aimed at improving the business environment. Investing the Arab funds locally and attracting FDIs are very crucial in order to satisfy the increasing needs for infrastructure, transport, education, health care, housing, business services, logistics, agriculture, oil and petrochemicals, financial sector, defense, industrial output as well as Islamic products.

In spite of the numerous advantages of the Arab world, the ongoing political turmoil hit hard many economies of the region. The absence of a demonstrated international competitiveness in either manufacturing or services as well as corruption constitute one of the main obstacles for doing business. Institutional reform, capacity building, reforming the education and the regulations facing business remains essential.

Moreover, the Arab world needs to create a dynamic private-sector in order to create sufficient employment. This will be done through high competitiveness, an educational system which meets the labour markets’ needs, and through encouraging applied sciences to transform ideas into real business projects, as well as through more consolidated trade and economic relations with the external world.

If the Arab region’s employment challenge can be successfully addressed, the region’s young demographic could then turn from a potential liability to a bonus. I believe it is time more than ever to invest in this region, not only because of the high return on investment, but also because the birth of the new economic paradigm, the future “G7”, passes through this region.

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Arab world major Statistics for 2013

Arab World Population by country  

Arab World GDP at PPP ($ Billion 

Source: World factbook, CIA, data for Libya and Somalia are for 2011.

Arab World GDP per capita 

* Data for Somalia are for 2011.

Source: World factbook, CIA and International Monetary Fund.

Arab World exchange rate 

Arab world: Gross domestic product (international comparaison with other emerging economies) current prices ($bn), 1991-2015

Arab world: Real GDP growth (international comparaison with economic blocs) current prices ($bn), 2012-2018

Arab world: Real GDP growth: comparaison between Oil-exporting countries

* Total for oil importing including Iran.

Arab world: Real GDP growth: comparaison between Oil-importing countries

1. In the IMF data under West Bank and Gaza.

2. Data for 2011exclude South Sudan after July 9. Data for 2012 and onward pertain to the current Sudan.

* Total for oil importing including Afghanistan and Pakista.

Arab world: Arab world Foreign direct investment flows (Million $) 2011

Arab world: Geographic distribution of FDI 2006

Arab world: Global Competitiveness Index: 2014-2015 rankings (vs. 2012-2013 rankings)

Arab World Largest Souveraign wealth funds 

Ease of Doing Business Rank 2015

Arab world: Free trade agreements with Switzerland  

Arab world: Swiss direct investment in the Arab world (international comparaison): Million SFr 

Arab world: Number of tourists arrivals from the Arab world in Geneva hotels for 2012 (hotel arrivals) (International comparaison)  

Energy Sector

Oil Reserves by country 2015 (Trillion Cubic Feet)

Source: EIA

Gas Reserves by country 2015 (Billion Barrels)

Source: EIA

Oil Price

Crude Oil Export Price (US$/bbl)

Trade between Switzerland and the Arab world

Switzerland: Exports to the Arab countries 2007-2014: Swiss Francs

Source of data: Swiss customs

Switzerland: Imports from the Arab countries 2007-2014: Swiss Francs

Source of data: Swiss customs

Switzerland Trade with the Arab World 2012: Swiss Francs

Source of data: Swiss customs

Swiss total Exports to the Arab World by Country 2014: million Swiss Francs

Source of data: Swiss customs

Swiss total Exports to the Arab World 2014: (Portion of total exports)

Source of data: Swiss customs

Swiss Total Imports from the Arab world by country 2014: Swiss francs

Source: Swiss customs

Swiss Total Imports from the Arab world 2014 (Portion of the total imports)

Source: Swiss customs

Swiss exports/imports with the Arab world (Million CHF)

Source: Swiss customs

Swiss main exports to the Arab world 2014 (CHF)

Swiss main Imports from the Arab world 2014

Swiss Exports to the Arab world by commodity comparaisons between the Arab countries

Swiss Imports from the Arab world by commodity comparaisons between the Arab countries