Global trade hits record $28.5trn in 2021

World trade in goods remained strong in 2021 and trade in services finally returned to its pre-Covid-19 levels, according to UNCTAD’s latest Global Trade Update.

“Overall, the value of global trade reached a record level of $28.5 trillion in 2021,” the report says. That’s an increase of 25 per cent on 2020 and 13 per cent higher compared to 2019, before the Covid-19 pandemic struck.

While most global trade growth took hold during the first half of 2021, progress continued in the year’s second half.

After a relatively slow third quarter, trade growth picked up again in the fourth quarter, when trade in goods increased by almost $200 billion, achieving a new record of $5.8 trillion.

Meanwhile, trade in services rose by $50 billion to reach $1.6 trillion, just above pre-pandemic levels.

The report shows that in the fourth quarter 2021, all major trading economies saw imports and exports rise well above pre-pandemic levels in 2019. But trade in goods increased more strongly in the developing world than in developed countries. Exports of developing countries were about 30 per cent higher than during the same period in 2020, compared with 15 per cent for wealthier nations. The growth was higher in commodity-exporting regions, as commodity prices increased. Moreover, South-South trade growth was above the global average, with a 32 per cent year-on-year increase.

Except transport equipment, all economic sectors saw a substantial year-over-year increase in the value of their trade during the final quarter of 2021.

Mena M&A activity surges record 66pc in 2021: EY

Merger & Acquisition (M&A) activity in the Mena region witnessed a major resurgence in 2021, registering an increase of 66 per cent from 2020, said professional services firm EY in a new report.

These record M&A levels were primarily driven by domestic (intra-regional) deals which increased to 366 in 2021, compared to 192 deals in 2020, according to the EY Mena M&A Insights report. The report also showed that announced total M&A deal value in the Mena region increased by 16 per cent in 2021 to $99 billion from $85.2 billion in 2020  –  while the top 10 deals by value in 2021 aggregated to $58.8 billion, 59 per cent of total announced deal value. 

Brad Watson, EY Mena Strategy and Transactions Leader, said: “In 2021, we saw a tremendous surge in Mena M&A activity as a result of improving post-COVID-19 market conditions. The recovery in oil and gas prices and an improving public health backdrop have also helped to lift the economic outlook in the region, leading to renewed confidence in regional boardrooms.”

Government-related entities (GRE) including sovereign wealth funds and national oil companies were pivotal players in the Mena M&A market in 2021, contributing to a total deal value of $62.6 billion, or 63 per cent of total disclosed deal value of $99 billion. Strategic M&A also had a good year with interesting deals such as the acquisition of Bayara (a nuts and spices company) by Savola as well as multiple acquisitions by Agthia in the confectionary and poultry space to strengthen their position in the Food & Beverage sector.

UAE experienced the highest deal activity in terms of volume (303 deals) whilst Saudi Arabia attracted the most M&A capital ($47.4 billion).  Egypt also saw robust deal activity in 2021 with 118 deals worth $7.7 billion.

Bahrain-origin exports soar 93pc to top $1bn

The value of Bahrain’s exports of national origin increased by 93 per cent to BD387 million ($1.018 billion) during January 2022, compared to BD200 million for the same month of the previous year, said the Information &eGovernment Authority (iGA).

The top 10 countries in terms of the value of exports of national origin purchased from Bahrain accounted for 76 per cent of the total value, with the remaining countries accounting for 24 per cent, iGA said in its foreign trade report of January 2022 encompassing data on the balance of trade, imports, exports (national origin), and re-exports.

Saudi Arabia ranked first among countries receiving Bahraini exports of national origin, importing BD70 million from Bahrain. Meanwhile, the US was second with BD69 million and the UAE third with BD30 million.

Unwrought aluminium alloys emerged as the top products exported during January 2022 with BD147 million, Agglomerated iron ores and concentrates alloyed was second with a value of BD42 million and aluminium wire not alloyed third with BD 20million.

The total value of re-exports increased by 3 per cent to reach BD54 million during January 2022, compared to BD53 million for the same month of the previous year. The top 10 countries accounted for 90 per cent of the re-exported value, while the remaining countries accounted for the 10 per cent. The Kingdom of Saudi Arabia ranked first with BD18 million, and the United Arab Emirate second with BD12 million, and Singapore third with BD7 million.

Portable digital automatic data processing machines the top product re-exported from Bahrain with BD4.1 million, and four-wheel drive cars came in second place with BD3.8 million, and part for other gas turbines came third with BD3 million.

The value of imports increased by 10 per cent, reaching BD449 million during January 2022 compared to BD409 million for the same month of the previous year. The top 10 countries accounted for 68 per cent of the value of imports, with the remaining countries accounting for 32 per cent.

UAE F&B imports from Latin America hit $1.9bn

The UAE’s food and beverage imports from Latin America reached $1.9 billion in 2020 as the Gulf country expanded its efforts to enhance food security, new analysis from Dubai Chamber of Commerce finds.

The findings, released on the sidelines of Gulfood 2022, will be discussed in further detail at the 4th Global Business Forum Latin America, which takes place March 23 to 24 in Dubai. Food and beverage exports from Latin American markets to the UAE accounted for 12 per cent of the country’s total food and beverage imports in 2020, according to the analysis, which is based on data from the UAE’s Federal Competitiveness and Statistics Centre (FCSC) and International Trade Centre.

Latin America is an important economic partner that can support the UAE achieve the goals outlined under its National Food Security Strategy 2051, which was launched in 2018 with the aim of making the country the world’s most food secure nation.

In addition, the analysis estimates the untapped potential of Latin American food and beverage exports to the UAE at $800 million, with animal products projected to see the highest value by category, followed by horticulture, vegetables processed food and animal feed beverages, sea animal products and cereals.