China tops trade partners in Gulf region

China has emerged as the Gulf region’s leading trading partner, surpassing Western nations for the first time in 2024, according to a report released by London-based think tank Asia House. The study reveals that trade between China and the six Gulf Cooperation Council (GCC) countries—Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates—grew by 14.2% to reach $257 billion in 2024. This figure exceeds the combined trade volumes of the Gulf with the United States, the United Kingdom, and Eurozone countries, which declined by 4% to $256 billion during the same period. The report, titled *The Middle East Pivot to Asia*, forecasts that Gulf-China trade will expand further, reaching $375 billion by 2028, with the gap widening to $75 billion. Freddie Neve, the report’s author, emphasized that Gulf economies are deepening ties with Asia faster than with any other region amid global trade disruptions. Energy imports from the Gulf remain a cornerstone of this relationship, supported by long-term energy agreements and Gulf investments in China’s downstream refining and petrochemical sectors. The broader Gulf-Asia trade surged to $516 billion in 2024, marking a 14.4% increase and nearly doubling Gulf-West trade volumes. Asia House CEO Michael Lawrence noted that economic, diplomatic, and commercial ties have reached a pivotal inflection point. The report also highlights the growing integration of Gulf and Asian financial markets, increased cross-border capital flows, and the potential rise of renminbi-denominated trade, which could enhance the Gulf states’ geopolitical strategies and reduce trade costs.