Saudi Arabia's trade volume will grow by 72 percent over the next 15 years and 26.39 percent over the next 12 months - compared to minus 1.36 percent in 2010, HSBC said in a new quarterly global forecast Wednesday. In the UAE, trade is expected to grow by 126 percent by 2025 with merchandise trade volumes up to $414 billion from their levels at $182.8 billion in 2010. In Egypt, trade volume is expected to grow by 270 per cent by 2025 with merchandise trading volume increasing from $201.83 billion up from 2010 of $71 billion. Qatar's trade volume is expected to grow by 160 percent over the next 15 years while growth in trade will increase to 15.82 percent over the next 12 months, compared to 9.77 percent in 2010. Middle East and North Africa (MENA) trade volume will grow by 84.7 percent by 2025, greater than the world trade average of 73 percent. Globally, the report forecast that despite the current economic climate, trade will grow by 2 per cent year-on-year until 2015. This is a volume increase of approximately 8 per cent with international trade activity growing, on average, by just under $1trillion a year between now and 2015. Moreover, the HSBC Trade Confidence Index - the largest survey of international traders globally - finds that despite a dip in global trade confidence, the majority of respondents (84 percent) anticipate either an increase in international trade, or consistent levels of international business activity, over the next six months. Businesses in Saudi Arabia, Egypt, the UAE and Indonesia are the most optimistic about the immediate future, showing a positive uplift in confidence on the first half of 2011. Tim Reid, Regional Head of Commercial Banking for Middle East and North Africa, said: The HSBC Trade Connections trade forecast reinforces our view that the long term case for superior returns in the MENA region remains. East to east trade, intra-MENA trade and foreign direct investment connectivity continue to grow. According to the forecast, intra-MENA trade is set to grow to 13.43 percent of the region's trade in 2025, from 11.3 percent today. Trade remains a key focus for HSBC. Our target to facilitate $750 billion world trade by 2013 is reflective of this commitment - particularly as we work towards establishing connectivity across our products, geographies and business lines. This is a real opportunity for businesses to take advantage of the increasing opportunities for new trade corridors such as South America, emerging Europe and Asia, and sectors to emerge – diversifying sources of revenue in the region.
