2025-10-08
Middle East Sees “Notable” Jump in Imports of Servers and Telecom Hardware in H1: WTO
The Middle East registered a "notable" increase in imports of servers and telecom hardware in the first half (H1) of 2025, reflecting sovereign-led digital transformation, according to the World Trade Organisation (WTO).
In its Global Trade Outlook and Statistics Update: October 2025, the WTO made this observation as it said the (Middle East) region is also playing a bigger role in AI (artificial intelligence)-related trade, albeit from smaller bases.
All major components of AI-related trade flows, such as final goods, equipment, and intermediate inputs, have seen an increase in their share of world trade value over the past two years.
The second quarter (Q2) of 2025 witnessed that the uptick in the share of AI-related goods in total trade was in large part related to increased imports and exports of equipment, such as machines and tools used for semiconductor manufacturing and testing. This category alone was responsible for almost 2% of global trade value, gaining 0.5% in Q2-2025.
The Middle East region's export volume of merchandise trade grew at 3.7% year-on-year in H1-2025, it said, adding the annualised growth in merchandise export volume for H1-2025 was "positive" in most WTO regions, with Asia leading growth at 10.4%.
On the import side, all regions experienced positive year-on-year growth for H1-2025; the Middle East had more moderate import volume growth of 5.1% compared to South America's 14.7% and Africa's 13.7%.
In 2026, trade growth forecasts for most regions and the world have been revised downward. The largest downgrade on the export side is for the Middle East, while the biggest reduction on the import side is for North America.
In the new forecast, Asia should record the fastest export volume growth of any region in 2025, at 5.3%, followed closely by Africa, also at 5.3%. These regions should be followed by South and Central America and the Caribbean (2.4%), the Middle East (2%) and Europe (0.7%).
Africa should see the fastest import growth of any region this year, at 11.8%, followed by South and Central America and the Caribbean (8.8%), Asia (5.7%), the Middle East (3.7%), the CIS (2.7%) and Europe (2.4%).
In commercial services, the WTO report said the Middle East will expand by 4.4% in 2025, with growth easing to 3.9% in 2026.
The WTO report found that global merchandise trade grew faster than expected in H1-2025 as the US imports surged ahead of expected tariff hikes and as spending on AI-related products accelerated, particularly in Asia and North America.
In its Global Trade Outlook and Statistics Update: October 2025, the WTO made this observation as it said the (Middle East) region is also playing a bigger role in AI (artificial intelligence)-related trade, albeit from smaller bases.
All major components of AI-related trade flows, such as final goods, equipment, and intermediate inputs, have seen an increase in their share of world trade value over the past two years.
The second quarter (Q2) of 2025 witnessed that the uptick in the share of AI-related goods in total trade was in large part related to increased imports and exports of equipment, such as machines and tools used for semiconductor manufacturing and testing. This category alone was responsible for almost 2% of global trade value, gaining 0.5% in Q2-2025.
The Middle East region's export volume of merchandise trade grew at 3.7% year-on-year in H1-2025, it said, adding the annualised growth in merchandise export volume for H1-2025 was "positive" in most WTO regions, with Asia leading growth at 10.4%.
On the import side, all regions experienced positive year-on-year growth for H1-2025; the Middle East had more moderate import volume growth of 5.1% compared to South America's 14.7% and Africa's 13.7%.
In 2026, trade growth forecasts for most regions and the world have been revised downward. The largest downgrade on the export side is for the Middle East, while the biggest reduction on the import side is for North America.
In the new forecast, Asia should record the fastest export volume growth of any region in 2025, at 5.3%, followed closely by Africa, also at 5.3%. These regions should be followed by South and Central America and the Caribbean (2.4%), the Middle East (2%) and Europe (0.7%).
Africa should see the fastest import growth of any region this year, at 11.8%, followed by South and Central America and the Caribbean (8.8%), Asia (5.7%), the Middle East (3.7%), the CIS (2.7%) and Europe (2.4%).
In commercial services, the WTO report said the Middle East will expand by 4.4% in 2025, with growth easing to 3.9% in 2026.
The WTO report found that global merchandise trade grew faster than expected in H1-2025 as the US imports surged ahead of expected tariff hikes and as spending on AI-related products accelerated, particularly in Asia and North America.
Source: GULF TIMES