RIYADH: Reforms across logistics, governance and business environment could see trade more than double between the Gulf Cooperation Council and the Caucasus and Central Asia regions.
A report published by the International Monetary Fund, and supported by experts speaking to Arab News, set out that while while current trade and investment flows between the two regions remain limited, there are major complementarities in energy, capital, and diversification strategies.
Substantial gains in trade, foreign direct investment, and resilience amid global fragmentation could be unlocked by reforms.
“Improving policies to the level of top 25 percent of global performers in the areas of logistics and governance could boost CCA trade in goods by about 150 and 120 percent, respectively,” said the IMF.
The IMF further said that comprehensive structural reforms are projected to raise FDI inflows by about 0.7 percent of gross domestic product in the CCA and 0.14 percent of GDP in the GCC.
