AngloArabia by David Wearing

Author:David Wearing
Language: eng
Format: epub
ISBN: 9781509532032
Publisher: John Wiley & Sons, Inc.
Published: 2018-10-22T00:00:00+00:00

Given the need to strengthen the UK’s manufacturing exports in order to better balance the economy, table 4.1 isolates the export of goods to assess the significance of the Gulf area as an export market in this regard. Again, developed markets account for the clear majority of goods exports, but the Gulf is significant compared to the rest of the developing world. The combined Arab Gulf area purchases more British goods than China, and goods exports to the region were worth 60 per cent of those to the combined BRICS market. Again, the Gulf stands as a significant global south market for British manufacturers.

At this point it is worth stressing the significance of military items within the category of goods exports to the GCC. According to data collated by Campaign Against Arms Trade, the UK government licensed £3.3 billion of military equipment for export to Saudi Arabia during 2015, the year covered by table 4.2. The total value of goods exported to Saudi Arabia that year was £4.68 billion, though it should be noted that military goods licensed for export in a given year may not necessarily be exported that same year. The £3.3 billion figure for 2015 was unusual (the 2014 figure was £107 million) and comes in the context of the war in Yemen. What this demonstrates is the relative significance of arms as a proportion of total goods exports and the dramatic effect those particular exports can have on a given year’s export figures.14 The value of UK arms exports to the GCC states will be discussed in more detail in chapter 5.

Another way the Gulf region contributes to the size of the British economy is through income earned by UK-based parties on investments made in the Gulf area. Table 4.2 shows the data for ‘primary income’ from the Gulf compared with the rest of the world. The Office for National Statistics includes investment income under the heading ‘primary income’, together with employee remuneration and some other forms of income such as rent. The earnings here are much smaller than those for the export of goods and services. Again, the Gulf area is eclipsed by the developed world but comparable with individual BRICS states.

Table 4.2 UK primary income, 2015, in current prices (£m)

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